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BUSINESS 


Forms,  Customs  and  Accounts, 


FOR 


SCHOOLS  AND  COLLEGES. 


BY 

SEYMOUR  EATON, 

Author  of  "  The  New  Arithmetic,"  "  One  Hundred  Lessons  in  Business,'*  «Ce. 


EXERCISE  MANUAL. 


NEW  YORK  •:•  CINCINNATI  •:•  CHICAGO 

AMERICAN     BOOK     COMPANY 


v> 


Lr-    V    f  Z   r. 


Copyright,  1894, 
By  Seymour  Eaton- 

E.  B.  F.  Man. 

W.  P.  10 


INDEX. 


Acceptance,  58,  63. 
Accommodation,  71. 
Account  book,  25. 

Sales,  79. 
Accounts,  20,  80,  106. 

Cash,  35. 

Consignment,  106, 

Expense,  35. 

Imaginary,  80. 

Item  ledger,  70. 

Merchandise,  35. 

Personal,  35,  80. 

Petty,  loi. 

Private,  35. 

Proprietor's,  35. 

Real,  80. 

Shipment,  106. 
Accrued  interest,  86. 
Ad  valorem,  73. 
Agency,  mercantile,  87. 
Agent,  selling,  27. 
Attach,  86. 

Attorney,  power  of,  87. 
Audit,  86. 

Balance  of  trade,  87. 
Balance  sheet,  57. 
Bank,  9,  88,  109. 

Account,  to  open,  9. 

Book,  9. 

Check,  II,  39,  64,  72. 

Note,  national,  34. 

Officers,  96. 

Statement,  109. 
Banking  system,  national,  109. 
Bill,  24. 

Invoice,  25. 

Itemized,  8. 

Money,  6. 

Of  exchange,  85. 

Of  lading,  62,  66,  67,  103. 

Payable,  44. 

Receivable,  45. 

Way,  63. 
Bonded  warehouse,  73. 
Book,  account,  25. 

Bank,  9. 

Cash,  7,  37. 

Daily  cash  balance,  77. 

Of  original  entry,  39. 

Order,  5,  83. 

Pass,  8. 
Broker,  70. 
Bullion,  6. 
Business,  5. 
Business  transaction,  20. 

Capital,  net,  12. 

Cash,  6,  loi. 

Cash  book,  7,  37. 

Certificate,  34,  82. 

Change,  method  of  making,  37. 


Chattel  mortgage,  47. 

Chattels,  86. 

Check,  9,  II,  53,  59,  no. 

Bank,  11,  39,  64,  72. 

Certified,  76. 

How  to  indorse,  11,  29. 

Indorsed  in  blank,  29,  no. 

Post-dated,  no. 

Protested,  29. 
Circulation,  6. 

Cleared,  when  a  vessel  is,  74. 
Clearing  house,  83,  106. 
C.  p.  D.,  17,  27. 
Com,  6. 
Collateral,  75. 
"Collect,"  54. 

Collection  of  note  before  matu- 
rity, 42. 
Commerce,  5,  103. 
Commercial  broker,  79. 

Traveler,  30. 
Commission  merchant,  17,  27, 

^      79- 

Common  carrier,  48. 
Common  law,  48. 
Company,  joint-stock,  55. 

Trust,  88. 
Composition  offer,  12. 
Consignee,  106. 
Consignment,  79,  106. 
Consignor,  106. 
Consumer,  17. 
Contract,  48. 
Corporation,  56. 
Correspondence,  14, 15,  28,  38, 
62,  67,  82. 

Official,  28,  35. 
Correspondents,  17. 
Counterfeiting,  6. 
Course  of  exchange,  105. 
Credit,  6,  20. 

Safe  basis  of,  104. 

To  give,  6. 
Credit  memorandum,  46. 
Creditor,  12,  20. 
Currency,  6. 
Current  of  trade,  33. 

Daily  cash  balance  book,  77. 
Date  of  maturity,  53. 
Days  of  grace,  45,  94. 
Debit,  20. 
Debtor,  20. 
Debts,  12. 
Demand  note,  ^i.  _ 
Demands,  receipt  in  full  of  all, 

10. 
Deposit,  9. 

Certificate  of,  82. 
Deposit  ticket,  9. 
Discount,  49,  51,  65,  71. 
Dividends,  56. 


Domestic  trade,  33. 
Double  entry,  21. 
Drafts,  57-59,  64,  103. 

Drawn  againstshipments,75. 

How  charged  and  credited, 
91. 

Indorsed  in  blank,  no. 

Three  party,  64. 
Drummers,  commercial,  30. 
Duties,  73,  90. 

Entry,  21,  26. 

Port  of,  73. 
Errors,  how  corrected,  25. 
Exchange,  35,  68,  105. 
Executor,  86. 
Export  trade,  33. 
Express  money  order,  61. 

Receipts,  54. 

Failure,  12. 

Financial  statements,  89,  92. 

Firm,  9. 

F.  O.  B.,  86. 

Foreign  trade,  33. 

Franchise,  55. 

Fund,  sinking,  86. 

Gold  certificates,  34. 

Coins,  34. 
Goods,  7. 

By  sample,  30. 

In  bond,  73. 

On  approval,  30. 
Grace,  days  of,  45,  94. 
Grocer's  order  book,  5. 
Gross,  8. 

House,  9. 

Import  trade,  33. 
Importer,  17. 
In  bond,  73. 
Income-tax,  90. 
Indexing,  98. 
Indorsement  in  blank,  110. 
Indorser  of  note,  45. 
Industrial  centres,  24 
Insolvent,  12. 
Instant,  16. 
Insurance,  41. 
Interest,  42. 
Internal  revenue,  9a 
Inventory,  19. 
Invoice,  25. 
Itemized  bill,  8. 

Jobber,  17. 
Job-lots,  17. 
Joint  note,  42,  100. 
Joint-stock  company,  5^ 
Journalizing,  35. 


54'l>^93 


INDEX. 


Law,  48. 

Ledger,  20, 
Directions  for  closing,  22, 

Ledger  practice,  21,  24,  26,  40, 
50,  56,  68,  78,  91,  98,  107. 

Legal  tender,  34. 

Letter  writing,  14, 15, 28,  38, 82. 

Liabilities,  12. 

License,  86. 

Lien,  51. 

Limitation,  expiration  of  part- 
nership by,  32. 

List  price,  49. 

Losses  and  gains,  statements 
of,  19,  30. 

Manifests,  72,  74. 
Manufacturer's    pay-roll,    43, 

102. 
Market,  10. 
Maturity  of  note,  53. 
Mercantile  agency,  87. 
Merchandise,  7. 
Merchant,  shipping,  27, 
Mint,  6. 
Money  by  express,  62. 

By  mail,  61. 

By  registered  letter,  61. 

By  telegraph,  61. 

On  deposit,  43. 
Money  order,  61. 
Mortgage,  chattel,  47. 

Real  estate,  51. 

To  foreclose,  51. 

National  bank,  88. 
Natural  resources,  24. 
Negotiable  note,  42. 
Net,  8. 

Capital,  12. 

Price,  49.        _     ^ 
"No  funds,"  signification  of, 

29. 
Non-negotiable  note,  42. 
Note,  41.^ 

Collection  of,  before  maturi- 

Date  of  matimty  of,  53. 
Demand,  41. 
Discounted,  68. 
How  collected,  63. 
Indorser  of,  45. 
Joint,  42,  100. 
National  bank,  34. 
Negotiable,  42. 
Non-negotiable,  42. 
Promissory,  41,    53,  68,  94, 

100. 
When  void,  42. 


Off-set,  86. 

On  approval,  goods,  30. 

Order,  shipper's,  66. 

Telegraphic,  27. 
Order-blank,  salesman's,  9. 
Order  book,  grocer's,  5,  83. 

Printer's,  83. 
Original  entry,  26,  39. 

Par  of  exchange,  105. 
Partial  payments,  94. 
Partner,  silent,  32. 
Partnership,  32. 

Accounts,  98. 

General,  32. 

Limited,  32. 
Pass  book,  8. 
Paying  teller,  9. 
Payments,  partial,  94. 

Terms  of,  94. 
Pay-roll,    manufacturer's,    43, 

102. 
Petty  accounts,  loi. 

Cash,  loi. 
Policy,  insurance,  41. 
Poll-tax,  90. 
Port  of  entry,  73, 
Post-dating,  no. 
Posting,  40. 
Power  of  attorney,  87. 
Premium,  insurance,  41. 
Present  worth,  12. 
Price,  97. 

List,  49. 

Net,  49. 
Printer's  order  book,  83. 
Products,  7. 
Promissory  note,  41,  53,  68,  94, 

100. 
Property-tax,  90. 
Proprietor,  20. 
Proximo,  16. 

Quotation,  17,  65. 

Raw  material,  17. 
Receipt,  10,  54,  75. 

Express,  54. 

Warehouse,  75. 
Receiver,  12. 
Receiving  teller,  9. 
Remittances,  how  made,  61. 
Resources,  12,  24. 
Retail  trade,  17. 
Revenue,  internal,  90. 

Sale,  20,  47. 

By  sample,  30,  85.  ♦ 

Salesman's  order-blank«  9. 


Selling  agent,  27. 
Shipment,  79,  106. 

Drafts  drawn  against,  75. 
Shipper's  order,  66. 
Shipping  by  express,  54. 
Shipping  merchant,  27. 
Ship's  report,  74. 
Silver  certificates,  34. 
Sinking  fund,  86. 
Smuggling,  73. 
Staples,  17. 
Statement,  8,  25,  89,  92. 

Bank,  109. 
Statute  law,  48. 
Stock,  when  to  take,  18. 
Syndicate,  56. 

Take  stock,  when  to,  18. 

Tare,  73. 

Tariff,  73. 

Taxes,  90. 

Telegraphic  order,  27. 

Teller,  9. 

Terms  of  payment,  94. 

Three  party  draft,  64. 

Time,  methods  of  keeping,  38. 

Time-tickets,  38. 

Trade,  balance  of,  87. 

Current  of,  33. 

Defined,  5,  17. 

Domestic,  33. 

Export,  33. 

Foreign,  33. 

Import,  33. 

Quotations,  65. 

Retail,  17. 

Wholesale,  17. 
Traffic,  5. 

Transaction,  business,  20, 
Traveler,  commercial,  30. 
Trial  balance,  40. 
Trust,  56. 

Company,  88. 

Ultimo,  16. 
Underwriters,  41. 

Valuation,  18. 
Value  received,  53. 
Vessel,  when  cleared,  74. 

Warehouse,  bonded,  73. 

Receipt,  75. 
Wares,  7. 
Warranty,  85. 
Way-bill,  63. 
Wholesale  trade,  17. 
World,  clearing  house  of  the, 
106. 


Business  Forms,  Customs  and  Accounts. 


LESSON  1. 


Commerce  is  the  interchange  of  produce  and  manufactures 
between  countries.  Those  things  which  are  grown  or  made  in  excess 
of  the  wants  of  any  country  are  exchanged  for  the  excess  of  the 
wants  of  different  products  and  manufactures  in  another.  The  term 
business  refers  more  particularly  to  our  dealings  at  home,  that  is,  in 
our  own  city  or  country.  Sometimes  this  name  is  used  in  connection 
with  a  particular  article,  as  the  lumber  business,  the  coal  business,  or 
the  dry-goods  business,  while  the  name  commerce  seldom  admits 
of  a  limited  application.  In  this  country  trade  is  synonymous  with 
business.  Trade  may  be  personal  while  commerce  cannot  be,  hence 
it  arises  that  trade  and  business  are  terms  generally  used  to  express 
commercial  transactions.  The  word  trafS.c,  as  limited  by  common 
usage,  applies  more  especially  to  the  conveyance  than  to  the  exchange 
of  products,  thus  we  refer  to  railroad  traffic,  lake  traffic,  etc. 

EXERCISE  1.    Grocer's  Order  Book. 

Directions. — Orders  for  groceries,  or  provisions,  or  meats,  when  given  at  the 
store  or  to  the  clerk  who  calls  to  take  the  order,  are  written  in  a  rough  book 
and  usually  with  a  pencil.  The  clerk  takes  the  name  or  address  and  then  writes 
the  names  of  the  articles.  If  the  address  is  familiar,  it  is  not  necessary  to 
write  it  each  time  an  order  is  received.  The  prices  may  be  written  at  the  time  or 
afterward.  For  practice  the  learner  is  advised  to  write  the  orders  in  ink.  Abbre- 
viate the  long  names.  When  the  orders  are  filled,  or  rather  when  the  baskets 
containing  the  articles  are  filled  and  placed  in  the  delivery  wagon,  the  order 
should  be  checked  off  on  the  book.  This  is  done  best  by  a  simple  check-mark 
with  blue  pencil  as  follows  V-  Mark  " Paid''''  very  plainly  to  the  left  of  each  cash 
order.  Follow  your  instructor's  directions  regarding  the  general  arrangement  of 
the  orders  on  the  sheet. 

Orders.— Monday,  June  3,  igo—.  T.  R.  Walmsley,  55  Chatham 
St. ;  3  lbs.  Butter,  32c. ;  3  lbs.  Japan  Tea,  55c. ;  8  lbs.  Pearl  Tapioca, 

7^c.;  6  lbs.  Brown  Sugar,  5c. Dr.  MacGeorge,  iSEppingSt; 

Colman's  Mustard,   >^  lb.  Tin,  25c.    (abbreviate  this  name);  6  pks. 

Potatoes,  27c.;  3  lbs.  Butter,  32c. S.  Peterson,  22  W.  40th  St.; 

3  lbs.  Oolong  Tea,  55c.;  10  lbs.  Brown  Sugar,  5c.  (Peterson's  order 
is  paid  at  the  time  of  ordering.    Mark  it  as  directed. ) Tuesday ^ 

(5) 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


June 4.    W".  H.  Sanderson,  804  Baltimore  Ave.;  5  lbs.  crackers,  12c.; 

3  lbs.  Rio  Coffee,  37c.;  7  pks.  Potatoes,  27c. Wm.  Williams,  18 

Collingwood  St.;  2  lbs.  Java  Coffee,  42c.;  12  lbs.  Granulated  Sugar, 
6c.;   2  oz.  Nutmeg,    Be;   X  lb.  Cinnamon,    12c.   (per  qr. );    12  lb& 

Graham  Flour,  4>^c. Mrs.  S.  H.  Hughes,  19  Spring  Lane ;  5  lb. 

can  Cleveland  Baking  Powder,  $1.90  (Paid). Thomas  Wallace, 

96  Fairmount  Ave.;  4  pks.  Potatoes,  27c.;  2  lbs.  Rockwood's  Choco- 
late,  37c. Wednesday y  June  ^.     B.  E.  Ellis,  69  Summer  St.;  5 

lbs.  Butter,  27c.;  2  lbs.  English  Breakfast  Tea,  65c.;  2  pkgs.  Wheatlet, 

i6c.;  14  lbs.  Crackers,  9c.;  2  bot.  Halford's  Sauce,  37c. R.  W. 

Spiers,  205  W.  Broadway;  10  lbs.  Crackers,  12c.;  2  lbs.  Cheese,  17c.; 

4 pks.  Potatoes,  27c. Wm.  McKinley,  18 Main  St.;  2doz.  Lemons, 

37c.;  I  Lem.  Extract,  20c.;  3  doz.  eggs,  i8c.;  2  lbs.  Rio  Coffee,  37c.; 
6  pks.  Potatoes,  25c.;  2  cans  Lima  Beans,  14c.  (Paid). 

Supplementary  Exercises. 

1.  A  grocer's  daily  cash  receipts  for  a  week  are  as  follows :  $197.64,  $204.35, 
$185.63,  $276.20,  $147.80,  $362.70.  His  total  credit  sales  for  the  week  amount  to 
$2496.68.    Find  his  average  daily  sales. 

2.  A  grocer  bought  three  crates  of  strawberries,  each  containing  thirty-six 
boxes  at  $2.40  a  crate.  What  will  be  his  entire  profit  if  he  sells  the  berries  at  the 
rate  of  two  boxes  for  25  cents? 

3.  Sugar  costs  6%  cents  a  pound,  and  a  grocer  sells  it  at  the  rate  of  thirteen 
pounds  for  $1,00.  The  cost  price  is  advanced  to  6^  cents  and  he  advances  his 
selling  price  to  twelve  pounds  for  $1.00.  How  will  the  change  effect  his  profit  on 
each  468  lbs.  of  sugar? 


LESSON  II. 

The  legal  medium  of  exchange  of  a  country  is  called  its  cnrrency, 
that  which  passes  current,  or  circulates  as  money.  The  term  money 
is  used  in  diflferent  senses  but  in  its  common  every-day  significance  it 
includes  coin  bearing  the  government  stamp  and  hills  issued  or 
acknowledged  by  the  government.  The  name  cash  as  applied  to 
money  includes  coin,  bills,  checks,  express  orders,  money  orders,  etc. 
Circulation  is  the  passing  of  money  from  hand  to  hand.  Money 
•  which  lies  idle  does  no  good  to  the  possessor,  and  is  of  no  benefit  to 
the  community.  Bullion  is  uncoined  gold  or  silver.  A  mint  is  a 
place  where  money  is  coined.  The  making  of  bills  or  coins  by  others 
than  the  government  is  called  counterfeiting  and  is  punishable  by 
heavy  penalties.  Credit  is  faith  or  trust.  To  credit  a  man  is  to 
trust  him.  A  trader  whose  credit  is  good  can  obtain  goods  or  money, 
according  to  the  requirements  of  his  business,  without  the  necessity 
of  immediate  payment. 


BUSINESS  FORMS.  CUSTOMS  AND  ACCOUNTS. 


EXERCISE  2.    Grocer's  Cash  Book. 

Directions.— Every  person  who  handles  money  should  keep  a  cash  book  in 
which  he  should  enter  the  cash  received  and  the  cash  paid  each  day.  The  cash 
book  should  be  balanced  at  the  close  of  the  day  and  an  entry  made  for  the  balance 
on  hand.  The  amount  on  hand,  as  shown  by  the  cash  book,  should  equal  the 
amount  of  coin,  bills,  checks,  etc.,  actually  on  hand.  It  is  a  common  thing  for  a 
bookkeeper  or  a  bank  clerk  to  spend  hours  searching  for  an  error  of  less  than 
ten  cents.  The  transactions  given  in  this  exercise  are  taken  from  the  cash  records 
of  a  grocer.  Follow  your  instructor's  directions  regarding  the  general  arrange- 
ment. 

Transactions,— January,  iga—.  (Write  the  name  of  the  month 
and  the  year  at  the  top  of  the  page.)  1.  Balance  on  hand,  I143.96. 
Received  $24.96  from  Peter  Henderson  in  full  settlement  of  his  ac- 
count.    ( IVrite  thus :  Peter  Henderson  paid  account  in  full ) 

Received  |io  from  James  Parton  to  apply  on  account.  Cash  sales  this 
day,  I37-43-  Paid  cash  for  12  bu.  Potatoes  at  55c.  Paid  James  Hood's 
wages  for  last  week,  $9.50.  2.  Received  $14.80  from  Dr.  F.  Snel- 
grove  in  full  of  account.  Received  I32.65  from  E.  E.  Ellis  to  cover 
bill  for  November.  Cash  sales  this  day,  I42.75.  Paid  S.  T.  Peterson 
&  Co.  on  account,  $50.  Paid  Philadelphia  Biscuit  Co.  December  bill  of 
$19.36.  Bought  coal  for  use  of  store,  $11.50.  Bought  10  bu.  Oats  at 
35c.  for  horse.  Paid$2.5ofor  repairing  delivery  wagon.  3.  Received 
$15.00  from  Williams  to  apply  on  account.  Cash  sales  this  day, 
$42.90.  Bought  office  stationery  for  cash,  $1.43.  Paid  my  note  due 
to-day  $100  favor  Hood,  Smith  &  Co.     Balance  on  hand,  | . 

Supplementary  Exercises. 

4.  Write  the  correct  abbreviations  of  the  following  names  :  Alabama,  Kentucky, 
Iowa,  Quebec,  California,  Illinois,  Ontario,  Michigan,  Texas,  Maine,  Thomas, 
Captain,  William,  General,  George,  Doctor,  Agent,  Express,  Brother,  Barrels, 
Honorable,  Mistress,  Account,  Robert,  Junior. 

5.  Write  from  memory  the  names  and  addresses  of  ten  well-known  business 
houses,  companies,  or  corporations. 

6.  As  an  exercise  in  spelling  write  from  memory  the  names  of  (i)  twenty 
kinds  of  dry  goods ;  (2)  twenty  kinds  of  groceries. 


LESSON  111. 

Products  when  considered  articles  of  trade,  are  called  merchan- 
disc,  goods,  wares.  The  term  merchandise  has  the  widest  mean- 
ing and  includes  all  kinds  of  movables  which  are  bought  or  sold. 
Goods  is  applied  more  particularly  to  the  supplies  of  a  merchant. 
Wares  are  goods  wrought  into  suitable  forms  for  industrial  processes, 
2iS  glassware,  hardware,  etc.  A  merchant  sells  his  goods  and  a  manu- 
facturer his  wares. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


Gross  commonly  means  coarse  or  bulky.  In  commerce  it  is  used 
in  reference  to  both  money  and  goods.  The  larger  sum  in  an  account 
or  bill — that  is,  the  sum  of  money  before  any  allowances  or  deduc- 
tions are  made — is  the  g-ross  amount.  The  g-ross  weight  of  a  package 
includes  the  weight  of  the  case  or  wrappings.  The  word  net  is  de- 
rived from  a  Latin  word  meaning  neat,  clean,  unadulterated,  and 
indicates  the  total  quantity  or  amount  of  goods  or  money  after  all 
deductions  have  been  made. 

BXERCISES  3  and  4.    Itemized  Bills  from  Grocer. 

Directions. — When  a  merchant  sells  goods  on  account,  that  is,  on  credit,  he 
writes  the  order  in  his  order  book  and  makes  out  an  itemized  bill ;  that  is,  a 
bill  giving  all  the  items,  and  gives  it  to  the  person  buying  the  goods.  If  the  pur- 
chaser keeps  a  pass  book,  the  grocer  writes  the  items  in  this  instead  of  in  the  form 
of  a  bill.  If  no  pass  book  is  used,  a  bill  should  be  sent  with  each  order  and  the 
monthly  statement  should  contain  simply  the  totals  of  the  bills  with  the  several 
dates.    Make  out  bills  to  accompany  the  following  sales  dating  them  to-day. 

Sale  I. — Henry  W.  Hudson^  57  Front  SL,  Germantown,  3  cans 
Peaches,  28c.;  3  cans  Pears,  25c.;  3  cans  Cherries,  24c.;  6  lbs.  Clus- 
ter Raisins,  22c. ;  2  lbs.  Orange  Peel,  i8c. ;  2  lbs.  Almond  Nuts,  28c. ; 
2  cans  French  Peas,  27c.;  12  lbs.  Granulated  Sugar,  7c. ;  5  lbs.  Butter, 
32c.;  3  lbs.  Lard,  i8c.;  6  lbs.  Boneless  Fish,  13c.;  2  cans  Potted 
Ham,  17c.;  4  cans  Hucking's  Soups,  35c.;  5  lbs.  Graham  Biscuits, 
i6c. ;  5  lbs.  Water  Biscuits,  13c. ;  Yz  lb.  Japan  Tea,  54c. ;  2  sacks  Flour, 
I1.45  ;  2doz.  Oranges,  35c.;  ^  doz.  Lemons,  30c.;  6  lbs.  White  Sugar, 
io>^c.;  2  gals.  Molasses,  75c.;  i  bag  Salt,  i8c.;  3  doz.  Eggs,  26c. 

Sale  2»—John  Adair,  100  St.  Vincent  St.,  West  Philadelphia. 
20  lbs.  Pastry  Flour,  4c. ;  2  lbs.  Rio  Coffee,  25c. ;  3  qts.  Mixed  Pickles, 
27c.;  2  lbs.  Bug.  Breakfast  Tea,  75c.;  3  lbs.  Crackers,  12c.;  2  Lem. 
Extract,  i8c. ;  i  pkg.  Pepper,  25c. ;  3  cans  Cherries,  24c. ;  i  Broom, 
30c.;  4  lbs.  Butter,  32c.;  yi  doz.  Oranges,  35c.  (this  will  be  i8c. ); 
2  lbs.  Lard,  i8c.,  2  pkgs.  Baking  Powder,  65c.;  i  Ham,  14^  lbs,  13c.; 
2  boxes  Corn  Starch,  12c.;  2  cans  Tomatoes,  i6c.;  6  cans  Hucking's 
Soups,  35c.;  5  lbs.  Cheese,  22c.  Five  dollars  is  paid  on  account  at 
the  time  of  sale.     (Credit  the  cash  payment  on  the  bill). 

Supplementary  Exercises. 

7.  Find  the  cost  of  3594  pounds  of  pork  at  $8.23  a  hundred. 

8.  A  produce  merchant  bought  1200  bags  of  potatoes,  each  containing  1% 
bushels  at  2)1%.  cents  a  bushel.  Allowing  12,%  bushels  for  waste,  how  much  will 
he  gain  by  selling  the  potatoes  at  15  cents  a  peck? 

9.  A  stationer  bought  twelve  reams  of  foolscap  at  $2.65  a  ream,  and  sold  half 
of  it  at  30  cents  a  quire,  and  the  remainder  at  the  rate  of  four  sheets  for  five  cents 
Find  his  entire  profit. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS, 


LESSON  IV. 

F'irm  means  solidity,  establishment,  strength,  and  in  a  commer- 
cial sense  signifies  two  or  more  persons  united  in  partnership  for  the 
purpose  of  trading.  House  is  a  word  very  frequently  used  in  the 
same  sense.  In  mercantile  usage  house  does  not  mean  the  building 
in  which  the  business  is  conducted,  but  the  people  who  own  the  busi- 
ness. Sometimes  the  name  includes  in  its  significance  the  owners, 
the  building,  and  the  entire  plant  or  stock. 

A  bank  is  a  place  where  money  is  deposited  for  safe  keeping  or 
for  convenience,  or  for  both.  When  you  enter  a  bank  to  open  an 
account,  inquire  for  the  cashier,  and,  if  convenient,  take  with  you 
some  one  who  can  introduce  you  and  identify  you  as  the  person  you 
profess  to  be.  The  cashier  will  have  you  place  your  signature  in  a 
book.  Your  name  as  written  in  this  book  should  be  the  same  in  style 
as  you  intend  to  place  on  your  checks.  Each  time  you  deposit 
money  you  will  be  required  to  make  out  a  deposit  ticket.  The  bank 
furnishes  these  blanks  free.  The  cashier  will  give  you  a  small  bank 
book,  in  which  you  will  be  credited  with  the  amount  of  money 
named  on  your  deposit  ticket.  When  you  deposit  money  always  go 
to  the  receiving  teller,  and  when  you  wish  to  draw  out  money 
present  your  check  to  the  paying  teller.  When  you  wish  to  have 
your  bank  book  balanced  hand  it  to  the  receiving  teller.  This  is 
usually  done  at  the  end  of  each  month. 

EXERCISE  5.    Salesman's  Order  Blank. 

Directions. — In  many  large  retail  stores  where  there  are  several  salesmen 
employed,  order  blanks,  similar  to  the  form  shown  in  the  blank  corresponding 
to  this  exercise,  are  used.  Carbon  duplicates  are  sent  to  the  customers  with  the 
goods,  and  the  originals  are  retained  and  turned  over  to  the  bookkeeper,  so  that 
the  proper  entries  maybe  made  in  the  books.  The  "27"  represents  the  sales- 
man's number.    Copy  the  order  below  on  the  order  blank. 

Credit  order  for  groceries. — Taken  2  p.  m.,  Nov.  3,  190 — . 
To  be  sent  to  Jacob  R.  Sleeper,  22  Tremont  St. ,  before  4  p.  m.  Sold 
by  Robinson.  Put  up  by  Perkins.  2  bx.  honey,  22c.;  3  lbs. 
Crackers,  13c.;  3  lbs.  Raisins,  12c.;  2  lbs.  Butter,  28c.;  >^  lb.  Tea, 
60c. ;  4  lbs.  Granulated  Sugar,  4)40. ;  2  qts.  Cranberries,  24c. 

EXERCISE  6.    Deposit  Ticket. 

Directions.— Under  the  word  "checks"  on  the  blank  write  the  names 
of  the  banks  upon  which  the  checks  are  drawn.  If  a  check  is  on  a  distant  city, 
the  name  of  the  city  as  well  as  the  name  of  the  bank  should  be  written.  If  the 
check  is  on  a  bank  in  a  distant  town,  write  the  name  of  the  town  only.  The 
names  of  banks  may  be  abbreviated. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


Cash  for  deposit, — Two  hundred  and  ten  dollars  in  bills; 
fifteen  silver  dollars ;  a  twenty  dollar  gold  piece  ;  a  check  on  the 
Second  National  Bank  of  lyiverpool  for  I47.13;  a  check  on  the 
Chemical  National  Bank  of  New  York  for  $33.90 ;  a  check  on  the 
Farmers'  National  Bank,  Columbus,  O.,  for  ^25  ;  a  check  on  the 
Darby  Bank,  Darby,  Pa.,  for  $3.42. 

A  receipt  is  a  written  acknowledgment  of  the  receipt  of  money 
or  other  value.  It  should  state  for  what  the  value  was  received, 
whether  on  account,  or  in  full  of  account,  or  for  some  particular  pur- 
pose. To  receipt  a  bill  it  is  sufficient  to  mark  "  Paid  "  or  "  Received 
payment"  with  the  date  and  the  signature  of  the  person  receiving 
payment.  A  receipt  in  full  of  all  demands  is  evidence  of  a 
compromise  and  mutual  settlement  of  all  claims  between  parties. 

EXERCISE  r.    Receipt  for  Borrowed  Money. 

On  June  15,  190—,  Jonathan  Edwards  borrowed  and  received  from 
Peter  Cartright  the  sum  of  $132.50,  to  be  returned  in  six  months 
with  interest  at  5  per  cent.  Write  the  receipt  which  Edwards  should 
give  Cartright. 

EXERCISE  8.    Ordinary  Business  Receipt. 

Guy  Mannering  owes  Adam  Bede  a  bill  of  $67. 34.  On  January  3, 
190 — ,  he  gives  him  $25  to  apply  on  account.  Write  a  receipt  for  the 
money. 

Supplementary  Exercise. 

10.  What  will  be  the  total  cost  of  mailing  the  following  articles  at  your  post- 
oflBce  :  A  letter  weighing  2j^  ounces  to  New  York  City  ;  a  registered  letter  weigh- 
ing one-half  ounce  to  Chicago  ;  a  letter  weighing  three-quarter  ounce  to  L,ondon, 
England  ;  a  book  weighing  z%  pounds  to  San  Francisco  ;  a  pair  of  gloves  weighing 
seven  ounces,  by  special  delivery  to  439  Delaware  avenue,  Buffalo ;  a  bundle  of 
newspapers  weighing  loj^  ounces  to  Springfield,  111. ;  a  book  weighing  eight 
ounces  to  Toronto,  Canada  ? 


LESSON  V. 

The  name  market  expresses  a  locality  for  the  sale  of  goods,  and 
in  commerce  is  often  used  to  denote  cities  or  even  countries.  We  say 
that  Boston  is  a  leather  market  or  New  Orleans  a  cotton  market,  mean- 
ing that  in  Boston  a  large  number  of  merchants  buy  and  sell  leather 
and  in  New  Orleans  a  large  amount  of  cotton  is  bought  and  sold.  In 
its  more  restricted  sense  the  name  market  signifies  a  building  or 
place  where  meats  and  produce  are  bought  and  sold.    We  say  that 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


the  market  is  flooded  with  a  particular  article  when  dealers  are 
carrying  more  of  that  article  than  they  can  find  sale  for,  or  there  is 
no  market  for  a  particular  article  when  there  is  no  demand  for  it. 

EXERCISE  9.    Carpenter's  Bill  for  Labor. 

On  May  13,  190— ,  Jacob  Freeman,  82  Centre  St.,  Nashville,  Tenn., 
carpenter,  completed  some  work  in  Peter  Paul  &  Co.  's  store,  804  W. 
Main  St.  The  work  consisted  of  shelving,  thirteen  covered  boxes,  and 
three  work-room  tables.  The  entire  material  used  cost  Freeman  I19. 65. 
The  work  took  him  62  >^  hours  and  he  charges  40  cents  an  hour. 
Make  out  Freeman's  bill  against  Peter  Paul  &  Co.  Receipt  the  bill 
for  Freeman. 

A  check  is  an  order  for  money  drawn  by  one  who  has  funds  in 
the  bank,  payable  on  demand.  Checks  are  usually  made  payable  to 
order,  ^^ Pay  to  the  order  of  John  Brown'''  means  pay  to  John 
Brown  or  to  any  person  he  orders  the  money  paid  to.  Such  checks 
must  be  indorsed  by  the  person  in  whose  favor  they  are  drawn 
before  they  can  be  cashed.  To  indorse  a  check  is  to  write  your  name 
on  the  back  of  it.  A  check  drawn  to  hearer  is  payable  to  any  per- 
son who  holds  it.  When  the  person  to  whose  order  a  check  is  drawn 
writes  his  name  on  the  back  without  any  modifying  or  restrictive 
words,  the  check  is  then,  in  effect,  payable  to  bearer  and  may  be  col- 
lected by  any  person. 

EXERCISE  10.    Bank  Check. 

Directions.— Number  the  check  and  write  the  date  carefully.  In  writing 
in  the  amount  begin  over  at  the  left  margin  and  write  the  word  "Nine,"  then 
draw  a  line  after  it,  filling  up  all  the  space  between  the  amount  and  the  word 
"Dollars."  If  you  write  "  Nine  "  in  the  middle  of  the  line  some  one  may  raise 
the  check  by  writing  "•Fifty'''  before  it,  making  the  amount  ^//"jv-wzW,  or  if  you 
fail  to  draw  the  line  after  the  "  Nine,''''  the  check  can  be  raised  to  ninety  by  adding 
"/;>'."  If  some  dishonest  person  should  do  this  with  your  check  and  your  bank 
should  pay  the  raised  amount,  the  loss  would  be  yours  and  not  the  bank's.  Use 
the  same  precaution  in  writing  the  amount  in  figures. 

James  Kulbertson  keeps  his  money  in  the  Tenth  National  Bank  of 
Elmira,  N.  Y.  He  has  a  balance  to  his  credit  of  I642.93.  The  last 
check  he  drew  was  No.  294.  He  owes  Perkins  &  Peterkin  ^9.36  and 
wishes  to  pay  them  to-day  by  check.  Put  yourself  in  Kulbertson's 
place  and  write  the  check. 

Supplementary  Exercises. 

II,  Rule  a  form  the  size  of  an  ordinary  business  envelope  on  a  sheet  of  paper 
and  address  it  to  Chas.  J.  Peters  &  Son,  94  High  st.,  Boston,  Mass. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


12.  On  Monday  morning  you  have  cash  $67,36  in  your  cash  drawer  and  the 
balance  in  your  bank  to  your  credit  is  $432.91,  During  the  day  you  receive  cash 
$139.40  and  pay  out  cash  (coins  and  bills)  $39.24,  You  deposit  $122.35  and  you 
issue  two  checks  in  payment  of  bills,  one  of  $194.22  and  the  other  of  $11.26.  On 
Tuesday  morning  you  deposit  all  the  cash  remaining  on  hand.  What  should  your 
bank  balance  be  then  ? 

13.  Write  a  receipt  for  money  ($13)  paid  you  by  Albert  Wilkins  for  Robert 
.\nderson,  in  part  payment  of  the  latter's  account. 


LESSON  VI. 

A  man's  resources  consist  of  the  money  and  property  which  he 
owns,  and  the  money  and  value  which  are  due  him.  His  liabilities 
are  what  he  owes.  His  present  worth  or  net  capital  is  the  dif- 
ference between  his  resources  or  assets  and  his  liabilities  or  debts, 
A  merchant  must  keep  in  view  his  resources  and  liabilities  at  the 
beginning  of  a  term  of  business  and  his  records  must  necessarily  com- 
mence with  lists  of  them.  A  man  is  insolvent  when  his  liabilities 
are  larger  than  his  resources.  If  his  credit  is  good  he  need  not  neces- 
sarily £-0  into  insolvency.  Business  men,  whose  resources  are  the 
larger,  are  very  often  forced  into  insolvency  when  collections  and 
sales  are  slow,  or  when  the  banks  refuse  to  lend  money  on  the  securi- 
ties they  offer.  When  a  business  man  fails,  his  entire  business  assets 
are  divided  among  his  creditors,  that  is,  among  the  people  whom  he 
owes,  or  he  may,  if  his  creditors  are  willing,  make  what  is  called  a 
composition  offer,  paying  as  much  as  he  can  on  each  dollar. 
Sometimes  it  may  not  be  possible  or  convenient  to  discontinue  a 
business  and  dispose  of  its  resources.  Where  this  is  the  case,  the 
creditors  have  a  receiver  appointed.  Such  a  person  receives  all  cash, 
and  acts  for  the  creditors  as  financial  manager.  If  it  is  to  their  interest 
to  have  the  proprietor  continue,  the  creditors,  through  the  receiver, 
pay  him  a  salary  for  his  services. 

EXERCISES :  Statements  of  Resources  and  Liabilities. 

Directions. — Take  one  ruled  space  for  each  txercise.  Write  the  name  of 
the  proprietor  in  the  centre.  Place  the  resources  on  the  right-hand  side  and 
the  liabilities  on  the  left.  In  Exercise  No,  14,  for  instance,  the  name  W.  B. 
Wheeler  will  be  written  in  the  centre,  and  on  the  right  you  will  have  "Cash, 
$936.42  ;"  "  Merchandise,  $1983.20  ;"  "  Real  Estate,  $1731.25,"  and  "  Parker,  $422.80," 
and  on  the  left  you  will  have  "  Baker  &  Co.,  $792.40."    The  difference  will  be 

written  on  the  left  side  in  red  ink  and  called  "  Present  worth,  $ ,"    The 

two  sides  should  then  be  footed  and  neatly  ruled  up.    Note  that  gains  should 
always  go  on  the  right-hand  side  and  losses  on  the  left. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


Exercise  11 — Henry  Hudson  has  cash  $936.85,  and  owns  property- 
valued  at  $673.24.  Francis  Drake  owes  him  $316.25,  and  he  owes 
Walter  Raleigh  $439.67.     Find  his  net  capital  or  present  worth. 

Exercise  12. — James  Freeman  has  cash  $5263.20,  and  goods  valued 
at  $3624.80.  John  Emerson  owes  him  $1243.20,  and  he  owes  Jacob 
Sharp  $2104.63.     Find  his  net  capital  or  present  worth. 

Exercise  13. — Thomas  Brown  commences  business  with  cash  $2000. 
He  owes  R.  M.  Hamilton  $436.20,  and  Robert  Bruce  $393.40.  Find 
his  net  capital  or  present  worth. 

Exercise  14. — W.  B.  Wheeler  has  cash  $936.42,  goods  valued  at 
$1983.20,  and  real  estate  valued  at  $1731.25.  S.  S.  Parker  owes  him 
$422.80,  and  he  owes  Baker  &  Co.  $792.40.  Find  his  net  capital  or 
present  worth. 

Exercise  15. — James  T.  Field  has  cash  $999.25,  goods  valued  at 
$987.65,  and  real  estate  valued  at  $1246.25,  when  he  begins  business, 
and  he  owes  Wm.  Hares  $239.20.  During  the  year  he  gains  $946.25, 
and  loses  $136.80.     Find  his  present  worth  at  the  end  of  the  year. 

Exercise  16. — Wallace  McMillan  commences  business  with  cash 
$5000.  During  the  first  year  he  gains  $1264.90,  and  loses  $364.90. 
Find  his  present  worth  at  the  end  of  the  first  year. 

Exercise  If. — Marshall  Baton  has  cash  $2302.40,  and  goods  valued 
at  $1237.24,  when  he  begins  business,  and  he  owes  Roderick  Suther- 
land $247.22.  During  the  year  he  loses  $1369.80.  Find  his  present 
worth  or  net  capital  at  the  close  of  the  year. 

Exercise  18. — J.  R.  Lindsay  has  no  capital  at  the  beginning  of  the 
year,  and  he  owes  $427.60  to  Charles  Brown.  He  gains  during  the 
year  $2637.40,  and  loses  $542.80.  Find  his  present  worth  at  the  close 
of  the  year. 

Exercise  19. — At  the  beginning  of  a  certain  year  Richard  Ball 
had  on  hand  cash  $924.62,  and  goods  valued  at  $742.85.  Robert 
Gilroy  owed  him  $243.42,  and  he  owed  James  Welsh  $139.60.  During 
the  year  he  invested  $763.25  additional,  and  withdrew  $321.47.  He 
gained  $463.20,  and  lost  $521.22.  Find  his  present  worth  or  net 
capital  at  closing. 

Exercise  20. — Robert  Boyd  invested  cash  $1264.20  in  a  certain 
business  on  January  i.  On  May  i  he  invested  cash  $902.40  additional. 
On  July  I  he  withdrew  cash  $1040.25.  On  November  i  he  borrowed 
$550  from  John  Adair  and  added  it  to  his  investment.  During  the 
year  he  gained  $426.30,  and  lost  $93.36.  Find  his  present  worth  or 
net  capital  at  the  end  of  the  year. 


14  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

LESSON  VII. 

The  primary  idea  of  a  letter  is  conversation  at  a  distance. 

If  this  be  kept  in  mind,  one  can  scarcely  fail  to  write  appropriately, 
if  one  can  converse,  properly  ;  for  a  letter  may  be  familiar  or  reserved, 
jocular  or  dignified,  according  to  the  relations  between  the  writer  and 
the  person  addressed. 

lyctters  of  friendship  should  be  simple  and  natural.  It  is  the 
little  things,  the  incidents  of  every-day  life,  the  home-chat  which 
make  a  friendship  letter  interesting.  Letters  of  courtesy  include 
invitations,  acceptances,  letters  of  congratulation,  of  condolence,  of 
introduction,  and  of  recommendation.  Letters  of  business  include 
all  correspondence  regarding  business  affairs.  Public  letters  embrace 
communications  to  newspapers  regarding  public  affairs.  Frequently 
a  writer  publishes  a  letter  addressed  to  some  prominent  person,  criti- 
cising his  opinions  or  his  actions,  or  putting  to  him  a  number  of 
formal  questions  with  the  view  of  receiving  a  published  reply.  This 
is  usually  called  an  open  letter. 


42  Hollis  St. , 
Newton^  Mass.^  Aug.  16 ^  ipoo. 

Mr.  John  Aiiderson^ 

Media,  Pa, 

My   dear  Sir: — /  have  this  day  received  your  favor 
enclosing  a  copy  of  the  etc. 

This  form  indicates  a  good  style  for  beginning  an  ordinary  busi- 
ness letter.  Bring  the  "  My  dear  Sir,"  over  to  the  left  so  that  it  will 
be  flush  with  the  '*  Mr."  and  the  left  end  of  the  second  line.  This  is 
the  most  approved  form,  and  it  is  certainly  the  neatest.  See  that 
your  address  at  the  top  is  full  and  complete.  Write  the  street,  or  the 
P.  O.  Box,  or  whatever  supplemental  address  is  necessary,  just  above 
the  name  of  your  post  office.  If  your  business  letter  is  to  a  married 
woman,  say  **  My  dear  Madam  "  instead  of  "  My  dear  Sir."  If  you 
are  well  acquainted  with  the  man,  drop  the  name  and  address,  and 
write  simply,  "  Dear  Mr.  Anderson,"  or  if  a  woman,  write  "  Dear  Mrs. 
Brown. "  If  he  is  younger  than  you,  either  in  years  or  experience,  or 
even  if  he  is  on  equality  and  is  a  warm  friend,  you  might  begin  *'  My 
dear  Mr.  Anderson."     Note  that  when  written  this  way  "  dear  "  is  not 


BUSMESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


written  with  a  capital.  If  you  are  addressing  a  business  letter  to  a 
young  lady  whom  you  do  not  know,  simply  write  **  Miss  Kate  Bel- 
mont," and  begin  your  letter  without  any  further  introduction.  If 
you  are  acquainted,  either  formally,  or  if  your  names  are  familiar  one 
to  the  other,  you  may  write  **  Dear  Miss  Belmont."  Of  course,  when 
written  in  this  way  there  is  no  other  part  to  the  salutation  as  in  the 
business  letter  addressed  to  **John  Anderson,"  when  his  address  is 
given.  Friendly  letters  to  men  or  boys  may  begin  **  My  dear 
Charley,"  or  **  My  dear  Brown."  The  old  forms  **  Kind  friend"  or 
"  Dear  friend  "  are  a  good  deal  out  of  date.  If  you  are  addressing  a 
business  letter  to  a  firm,  write  **  Gentlemen"  instead  of  "My  dear 
Sir."  Never  use  the  vulgar  contraction  "Gents."  Neatness  and 
correctness  are  essential  in  all  correspondence.  There  is  no  excuse 
for  a  carelessly  written  letter.  The  thought  conveyed  and  the  im- 
pression made,  as  in  conversation,  are  of  vastly  greater  importance 
than  the  arrangement,  paper  and  ink  of  the  letter,  or  the  stature  or 
attire  of  the  speaker.  It  is  better,  however,  to  use  forms  of  ar- 
rangement and  styles  of  paper  in  harmony  with  the  best  usage. 

There  are  towns  and  cities  in  different  States  and  Provinces  which 
have  the  same  name.  In  writing  from  any  such,  even  though  it 
be  a  large  and  well-known  place,  be  careful  to  add  the  name  of  the 
State  or  Province.  Better  put  your  street  and  number  on  every 
letter.  Your  correspondent  does  not  want  to  spend  an  hour  looking 
for  an  old  letter  containing  your  address.  Don't  crowd  your  letter. 
Ivcave  a  good  inch  at  the  top  of  the  sheet  perfectly  blank. 

Titles  should  not  be  omitted,  but  they  should  be  used  sparingly. 
**  Mr."  is  good  enough  for  anybody  from  the  President  down.  Never 
put  on  a  title  at  each  end  or  more  than  one  at  either  end.  The  saluta- 
tion of  letters  addressed  to  public  ofRcers  should  be  quite  formal 
if  the  letters  relate  to  public  affairs.  In  such  letters  the  address  is 
usually  put  at  the  close. 

Keep  the  margins  of  your  letter  even.  Don't  make  many  para- 
graphs.  When  a  new  paragraph  is  necessary,  it  should  begin 
directly  on  a  line  with  the  first  word  of  the  body  of  the  letter.  Learn 
to  write  straight  on  unruled  paper. 

The  closing  words  should  not  be  more  familiar  than  the  saluta- 
tion, and,  like  the  words  of  the  salutation,  they  depend  upon  the 
relation  between  the  two  persons.  '■^Respectfully  yours ^^^  **  Very 
truly  yours ^''^  '*  Yotirs  cordially^'''  etc.,  are  the  usual  closing  words  of 
formal  correspondence.  lyctters  of  friendship  admit  of  less  formal 
terms.  The  ^rst  wor^  only  o^  the  complimentary  close  should 
begin  with  ^  capital. 


i6  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

Write  your  signature  plainly.  Your  friends  may  be  very 
familiar  with  your  dashing  ink  Hnes,  but  the  man  who  sees  the  name 
for  the  first  time  may  have  considerable  difficulty  in  transforming  it 
correctly  into  readable  script. 

Instant.— The  abbreviated  form  is  tnsi.  In  correspondence  this  word  means 
present  month. 

Ultimo.— The  abbreviated  form  is  ult.  In  correspondence  this  Latin  word  means 
the  month  lastj>ast. 

Proximo.- The  abbreviated  form  v&prox.  In  correspondence  this  I^atin  word 
means  next  or  coming  month. 

Thirty  thousand  misdirected  letters  reach  the  dead  letter  office  at 
Washington  daily.  The  public  need  to  be  educated  along  this  line. 
In  addressing  an  envelope  write  first  the  name,  then  the  post 
office,  then  the  State.  If  additional  matter,  such  as  street,  or  box,  or 
county,  is  necessary,  put  it  at  the  lower  left-hand  comer.  Even  in 
the  case  of  large  cities,  it  is  necessary  to  write  the  name  of  the  State, 
for  there  are  in  the  United  States,  five  New  Yorks,  nine  Philadelphias, 
and  twelve  Bostons.  Be  particularly  careful  in  writing  the  abbrevia- 
tions of  States.  Thus  N.  Y.  may  easily  be  taken  for  N.  J. ;  Pa.  for 
Va. ;  Cal.  for  Col. ;  Md.  for  Ind. ;  Me.  for  Mo.  Mail  intended  for  peo- 
ple who  will  be  in  a  place  only  a  day  or  two  should  have  the  word 
"  T^ransient  "  added  to  the  address  to  distinguish  it  from  permanent 
residents.  Write  it  in  the  upper  left-hand  corner  and  enclose  in 
brackets.  Always  put  the  stamp  in  the  upper-right  hand  comer. 
Letters  to  be  registered  must  have  the  name  and  address  of  the  sender 
on  the  envelope. 

In  ordering  goods  complete  shipping  directions  should  always 
be  given.  In  advising  of  the  shipment  of  goods,  the  name  of  the 
transportation  company  should  be  given. 

EXERCISE  21.    Business  Correspondence. 

Write  a  letter  to  the  wholesale  dry  goods  house  of  Pancroft,  Perth 
&  Co. ,  397  Madison  Ave. ,  New  York  City,  ordering  five  pieces  No.  2460 
Black  Dress  Velvet,  four  pieces  No.  1263  Black  Satin,  thirteen  pieces 
No.  843  C.  L.  Gingham,  twelve  pieces  No.  924  Black  Dress  Silk.  State 
that  these  are  the  same  as  goods  ordered  through  their  traveler  on  a 
certain  date  (give  date)  last  year.  Ask  to  ship  by  Merchants'  Dispatch 
at  earliest  date.  Expect  usual  discount  and  time.  Sign  the  letter  for 
your  firm. 

Supplementary  Exercises. 

14.  As  an  exercise  in  composition,  give  in  your  own  words  and  as  fully  as 
possible,  three  laws  of  the  country. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  17 

15.  Find  the  cost  of  painting  the  floor  of  a  hall,  62^^  feet  long  by  45  feet  wide, 
at  i3>4  cents  a  square  yard. 

16.  Place  capitals,  where  necessary,  in  the  following  sentences : 

easter  Sunday  comes  in  april  and  thanksgiving  in  november. 
he  works  at  the  office  of  the  £Etna  life  insurance  company, 
we  went  west  by  the  new  york  central  railway, 
pekin  is  the  capital  of  the  empire  of  China. 

17.  July  begins  on  Saturday.    Draw  up  a  neat  calendar  for  this  month. 


LESSON  VIII. 

As  regards  the  quantity  of  goods  bought  or  sold  in  a  single  trans- 
action, trade  is  dividod  into  wholesale  and  retail.  Trade  is  said  to 
be  wholesale  when  goods  are  bought  or  sold  in  large  quantities.  The 
wholesale  dealer  sells  to  other  dealers  while  the  retail  dealer  sells 
to  the  consutnerf  that  is,  the  person  who  consumes  or  uses  the 
goods.  An  importer  brings  goods  from  foreign  countries.  A 
jobber  is  one  who  buys  from  importers  and  manufacturers  and  sells 
to  retailers.  He  is  constantly  in  the  market  for  bargains.  The  names 
jobber  and  wholesaler  are  often  used  in  the  same  sense.  Wholesale 
has  reference  to  the  quantity  the  dealer  sells,  and  not  to  the  source 
from  which  he  buys,  or  to  the  party  to  whom  he  sells.  The  whole- 
saler deals  in  staples  (that  is,  goods  which  are  used  season  after 
season;  regular),  while  the  jobber  looks  for  Job-lots,  that  is,  a 
a  limited  or  remaining  lot  which  is  sold  cheap  to  clear  up  the  stock. 
Quotation  is  the  statement  of  prices.  An  intending  purchaser  of 
goods  which  are  accustomed  to  vary  in  value  will  ask  the  merchant  to 
quote  prices.  Material  before  it  is  manufactured,  such  as  wool,  cotton, 
leather,  is  called  raw  material,  A  large  variety  of  manufactured 
products  and  also  raw  material  are  sold  to  the  trade  (those  who 
trade,  that  is,  buy  and  sell)  through  correspondents  in  trade  cen- 
tres.   These  correspondents  are  known  as  commission  merchants. 

EXERCISE  22.    Market  Order  Book. 

Directions. — The  order  book  for  a  meai  or  provision  market  should  be  kept 
in  the  same  form  as  that  of  a  grocer.  In  abbreviating  long  names  be  careful 
to  write  intelligible  abbreviations.  To  find  the  total  sales  for  the  day  draw  a 
pencil  line  around  the  amounts  of  the  cash  orders,  foot  up  the  others,  and  add  the 
total  to  the  cash  sales.  If  the  order  is  sent  C.  O.  D.  (collect  on  delivery),  write 
these  letters  at  the  left.  C.  O.  D.  orders  should  be  considered  paid  unless  the  man 
who  delivers  the  order  reports  to  the  contrary.  A  receipted  bill  should  accompany 
each  C.  O.  D.  order. 


I8  BUSINESS  FORMS,  CUSTOMS  AMD  ACCOUNTS. 

Orders, — Monday,  June  5,  igo—.  James  Stevenson,  42  Homer 
Ave.;  2>/t  lbs.  Round  Steak,  24c.;  i  bu.  Potatoes,  45c.;  i  box  Straw- 
berries, i8c. ;  I  can  Tomatoes,  14c Dr.  MacGeorge,  18  Epping 

St.;  lYz  lbs.  I^amb  Chops,   i8c. ;    Pair  of  Chickens,    ']%   lbs,  14c.;  2 

boxes  Strawberries,  35c.   (for  the  two);  2  bunches  Celery,  12c. 

Tuesday,  June  6.  T.  R.  Walmsley,  55  Chatham  St. ;  3  lbs.  Sirloin 
Steak,  24c.  ;  2  bu.  Potatoes,  45c.  ;  i  box  vStrawbcrrics,  iSc.  ;  2  qts.  Green 
Peas,  I2c.  ;  }4  lb.  Suet,  12c. Thos.  Wallace,  18  Griersville  Ter- 
race ;  Rib  Roast,  7>^  lbs.,  i8c.  ;  Pair  of  Chickens,  8  lbs.,  14c.  (C.  O.  D. ). 

-^ — Mrs.    S.    H.    Hughes,   19  Spring   Lane;    Ham,   131^   lbs.,  14c. 

(Paid). Wednesday,  June  7.     W.  H.  Sanderson,  804  Baltimore 

Ave.  ;  2  boxes  Strawberries,  35c.  ;  Leg  of  Lamb,  7>^  lbs.,  i8c.  ;  2  lbs. 
Head  Cheese,  12c.;  2  gal.  pi.  Mixed  Pickles,  I1.40;  2  bot.  Halford's 

Sauce,   37c. Wm.    Williams,    18  CoUingwood  St.;  4  lbs.    Veal 

Cutlet,  22c. Wm.  McKinley,  18  Main  St.;  y/z  lbs.  Pork  Chops, 

iSc. ;  2  qts.  Green  Peas,  12c.;  2  lbs.  Corned  Beef,  8c.;  3  lbs.  Lard,  14c.; 
Turkey,  8>^  lbs. ,  i8c. ;  2  cans  Lima  Beans,  14c. — « — Thursday,  June  8. 
E.  E.  Ellis,  69  Summer  St. ;  3)^  lbs.  Tenderloin,  27c. ;  6  pks.  Potatoes, 
15c.;  Pair  of  Chickens,  9  lbs,  14c.;  i  box  Strawberries,  i8c.  (Paid). 

Dr.  F.  Snelgrove,  18  Windsor  Terrace ;  Leg  of  Lan^,  8>^  lbs., 

i8c. ;  3  lbs.  Sausage,  14c. 


Supplementary  Exercises. 

18.  James  Anderson  invested  cash  $964.32  on  January  i.  At  the  same  time  he 
owed  I490.40.  During  the  year  his  debt  increased  to  $736.40,  and  at  the  close  of 
the  year  he  found  that  his  total  resources,  including  cash  on  hand,  amounted  to 
$1234.80.    Find  his  present  worth  at  the  close  of  the  year. 

19.  On  Friday  morning  you  have  cash  $93.42  in  your  cash  drawer,  and  the 
balance  in  your  bank  to  your  credit  is  $564.83.  During  the  day  you  receive  cash 
$146.85  and  pay  out  cash  (coins  and  bills)  $43.66.  You  deposit  $131.49,  and  you 
issue  two  checks  in  payment  of  bills,  one  of  $201.33  and  the  other  $7.90.  On 
Saturday  morning  you  deposit  all  the  cash  remaining  on  hand.  What  should 
your  bank  balance  be  then  ? 

20.  Find  the  cost  of  135^  pounds  of  spice  at  2,%  cents  an  ounce. 


LESSON  IX. 

Valuation  is  the  appraisement,  or  finding  out  of  the  present 
worth  of  a  thing.  It  differs  from  price,  for  a  thing  may  be  bought  at 
an  extravagant  price,  and  could  be  sold  only  at  a  loss.  Wrong  esti- 
mates are  ruinous,  and  it  is  better  to  see  the  truth  than  to  continue  an 
enterprise  on  a  mistaken  basis.  Merchants  value  their  goods,  or  as 
they  call  it,  take  stock,  usually  at  that  period  of  the  year  when  the 
smallest  quantity  is  on  hand. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  19 

EXERCISES.    Statements  of  Losses  and  Gains. 

Directions.— The  difference  between  the  cost  of  anything  and  the  price  at 
which  it  is  sold  is  a  gain  or  a  loss— a  gain  when  the  selling  price  is  the  greater 
and  a  loss  when  the  cost  is  the  greater.  The  name  inventory  is  given  to  the  list 
(and  prices)  of  the  goods  remaining  unsold  at  the  end  of  the  year  when  the 
merchant  takes  stock.  Use  red  ink  in  ruling  and  in  writing  in  the  inventory  and 
the  gain  or  loss.  Take  Kxercise  25  for  illustration.  Write  the  name  "Hard- 
ware "  in  the  centre.  On  the  left-hand  side  write  "  On  hand,  $963.24  ;  "  "  Bought, 
$764.39,"  and  on  the  right-hand  side  write,  "  Sold,  $1036.72 ;"  "  Inventory,  $964.27, 

Then,  on  the  lefl-hand  (smaller)  side,  write,  "Gain,  $ ,"  for  the  difference. 

If  the  right-hand  side  were  the  smaller;  that  is,  if  the  business  produced  less 
than  it  cost,  it  would  show  a  loss. 

Exercise  23.— Dry  Goods.  Value  of  dry  goods  on  hand  Jan.  i, 
I2372.20.  Bought  during  the  year  dry  goods  costing  $3468. 37.  Sold 
during  the  year  dry  goods  for  I4672.89.  Dry  goods  on  hand  Dec.  31, 
valued  at  I3242.80.     Find  the  gain  or  loss  on  dry  goods. 

Exercise  24.— Drugs.     Value  of  drugs  on  hand  Jan.  1,12034.20. 

Bought  during  the  year  drugs  costing  I1937. 20.  Received  for  drugs 
sold  during  the  year  1^2763,43.  On  hand  at  the  close  of  the  year  drugs 
valued  at  I1895.62.     Find  the  gain  or  loss  on  drugs. 

Exercise  25.— Hardware.  Value  of  hardware  on  hand  Jan.  i, 
I963.24.  Bought  during  the  year  hardware  costing  I764.39.  Sold 
during  the  year  hardware  for  I1036.72.  Value  of  hardware  remaining 
unsold  Dec.  31  estimated  at  cost  I964.27.  Find  the  gain  or  loss  on 
hardware. 

Exercise  26 — Real  Estate.     Value  of  property  owned  Jan.    i, 

I6984.25.  Bought  during  the  year  property  costing  I2043. 27.  Built 
houses  on  property  at  a  cost  of  I4637.54.  Sold  during  the  year 
property  for  I7327.89.  Value  of  property  remaining  unsold  Dec.  31, 
I8950.     Find  the  gain  or  loss  on  real  estate. 

Exercise  2f  .—Grain,  Value  of  grain  on  hand  Jan.  i,  I1298.42. 
Bought  during  the  year  grain  costing  I9462.80.  Total  sales  of  grain 
during  the  year  amounted  to  ^7684.25.  I^ost  by  fire  grain  valued  at 
I1004. 25.  Received  insurance  $850.  Value  of  grain  remaining  on 
hand  Dec.  31,  $2494.20.     Find  the  gain  or  loss  on  grain. 

Exercise  28.— Groceries.  Value  of  groceries  in  store  Jan.  i, 
I924.37.  Cost  of  all  purchases  during  the  year  $643.29.  Amount  of 
all  sales  during  the  year  $1243.67.  Stock  sheet  shows  value  of  gro- 
ceries on  hand,  Dec.  31,  to  be  $67.82.  Find  the  gain  or  loss  on  the 
year's  sales.  (This  exercise  will  show  a  loss.  Write  the  word  loss 
with  the  amount  on  the  right-hand  side. ) 

Exercise  29.— Proyisions.    None  on  hand  Jan.  i.    Total  purchases 

for  the  year  $3684.20.  Total  sales  for  the  year  $2946.20.  Inventory, 
Dec.  31,  $1998.63.  General  expenses  for  the  year  $246.80.  Find  the 
gain  or  loss  on  provisions. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


Exercise  30.— Furniture.  None  on  hand  Jan.  i.  Total  purchases 
for  the  year  I2472.93.  Total  sales  for  the  year  I1362.80.  Inventory, 
Dec.  31,  ^960.40.  General  expenses  for  the  year  I324.20.  Find  the 
gain  or  loss  on  furniture. 

Exercise  31.— Books  and  Stationery.  Value  of  stock  Jan.  i, 
I3642.22.  Total  purchases  during  the  year  I6362.40.  Total  sales  dur- 
ing the  year  ^9640.25.  None  on  hand  Dec.  31.  Expenses  of  the  year 
I563.39.     Find  the  gain  or  loss  on  books  and  stationery. 

Exercise  32.— Real  Estate.  Value  of  property  Jan.  i,  $7642.93. 
Bought  property  during  the  year  costing  $3724.60,  and  sold  property 
for  $8329.20.  Added  buildings  at  a  cost  of  $4268,30.  House  valued 
at  $1200  destroyed  by  fire.  Received  insurance  $1000.  Expenses  of 
sales  $137.25.  Rents  received  $724.60.  Paid  taxes  $194. 2^.  Value 
of  property  Dec.  31,  $12,632.     Find  the  gain  or  loss  on  real  estate. 


LESSON  X. 

A  sale  is  a  transaction  whereby  the  property  or  goods  of  one  per- 
son is  transferred  to  another  for  a  money  or  other  consideration.  A 
business  transaction  is  an  exchange  of  value  or  values  and  necessi- 
tates a  transfer  of  ownership.  A  debtor  is  one  who  receives  value 
(gets  in  debt)  and  a  creditor  is  one  who  delivers  value  (gives  credit). 
An  expression  of  value  received  is  called  a  debit  and  of  value  de- 
livered is  called  a  credit.  An  account  is  a  record  of  debits  and 
credits  under  a  proper  title  in  a  final  book  of  entry  called  the  ledger. 
The  debits  are  written  on  the  left  side  and  the  credits  on  the  right 
side.  To  debit  a  man  means  to  charge  him ;  to  debit  an  account 
means  to  charge  the  amount  to  that  particular  account.  To  credit 
means  literally  to  give  credit.  The  principles  of  debit  and  credit  are 
conveniently  set  forth  in  the  following  six  rules  : 

Debit    I,  the  person  or  jinn  receiving  value  from  you. 

2,  the  account  representing  what  you  receive. 

5,  the  account  representing  what  is  a  loss  to  you. 
Credit  4,  the  person  or  firm  who  delivers  value  to  you. 

5,  the  account  representing  what  you  deliver  to  others. 

6j  the  account  representing  what  is  gain  to  you. 

The  proprietor  should  be  credited  with  each  resource  and  debited 
(charged)  with  each  liability  when  beginning  business.  He  should 
be  credited  with  additional  sums  invested  and  debited  with  any  sums 
withdrawn  for  private  use. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


EXERCISE  33.    Ledger  Practice.    Double  Entry. 

Directions.— The  fifteen  transactions  given  here  extend  over  a  period  of 
one  month  and  represent  the  business  done  during  that  month.  A  record  of 
these  is  supposed  to  have  been  made  in  your  day-book.  The  day-book  record  is 
simply  a  copy  of  the  transaction  with  the  date  and  amount.  You  are  now  expected 
to  transfer  these  transactions  to  a  double-entry  ledger. 

Jan.  I. — (Student)  commenced  business  investing  cash  I904.25. 

Directions. — Write  your  own  name  over  the  first  account.  Write  "  Cash  " 
over  the  account  directly  under  yours.  Credit  yourself  with  your  investment ; 
that  is,  write  $904.25,  preceded  by  the  date,  on  the  credit  side  of  your  account. 
Debit  the  cash  account  with  the  same  amount.  Note  that  we  debit  the  cash 
account  for  all  cash  on  hand  and  for  each  item  of  cash  received,  and  we  credit 
the  cash  account  for  each  item  of  cash  paid.  Write  nothing  in  the  space  between 
the  date  column  and  the  money  column.  Notice  that  there  are  spaces  for  ten 
accounts. 

Jan,  3, — Paid  office  expenses  in  cash  I42.80. 

Directions.— Write  the  name  "Expense"  over  the  third  account.  Credit 
the  cash  account  with  $42.80,  and  debit  the  expense  account  with  the  same 
amount.  Remember  that  to  debit  means  to  charge.  To  debit  expense  is  to  charge 
to  expense. 

Jan.  6. — I^ent  cash  $100  to  James  Lincoln,  returnable  on  demand. 

Directions. — Write  "  James  Lincoln  "  over  the  fourth  account.  Credit  the 
cash  account  because  cash  has  been  paid,  and  debit  or  charge  James  I^incoln. 

Jan,  7. — Bought  for  cash  merchandise  costing  $590.45. 

Directions. — Write  the  name  "Merchandise"  over  the  next  account.  Credit 
the  cash  account  because  cash  has  been  paid,  and  debit  the  merchandise  account, 
because  merchandise  has  been  received.  The  cash  account  represents  the  cash- 
drawer  ;  the  merchandise  account  represents  the  store  or  warehouse.  We  in 
reality  charge  (debit)  the  cash-drawer  with  the  cash  received  (put  into  it), 
and  the  warehouse  with  the  merchandise  received  (stored  there). 

Jan,  9. — Sold  merchandise  for  cash  $436. 25. 

Directions. — This  is  the  opposite  to  the  transaction  of  January  7.  Cash 
is  received  and  merchandise  is  disposed  of.  We  credit  the  merchandise  account 
(warehouse)  with  all  the  merchandise  sold. 

Jan,  10, — Bought  on  credit  from  Robert  Garfield  merchandise 
invoiced  at  I622.95. 

Directions.— open  an  account  with  Robert  Garfield.  The  goods  are  bought 
on  account ;  that  is,  an  entry  of  them  is  made  t'n  an  account.  The  merchandise 
account  is  debited  and  Robert  Garfield  is  credited.  We  write  the  amount  (with 
the  date)  on  the  credit  side  of  his  account.  We  give  him  credit  for  the  value  he 
gives  us  and  for  which  we  have  as  yet  given  nothing  in  return. 

Jan,  12, — Sold    merchandise   invoiced  at  $364.25  on  credit  to 
James  Arthur. 

Directions. — Open  an  account  with  James  Arthur.  Debit  (charge)  him  with 
the  value  he  received.  Credit  the  merchandise  account  (warehouse).  Notice 
that  every  entry  is  made  twice.  This  is  why  this  method  of  keeping  accounts  is 
called  double  entry. 

Jan,  14, — Paid  a  wages  bill  of  $27.30  in  merchandise  from  the  store. 

Directions.— Write  the  name  "Wages"  over  the  next  account.  This  is  an 
expense  item  and  might  go  in  the  expense  account.  Credit  the  merchandise 
account  and  debit  (charge)  the  wages  account. 

Jan.  X5. — James  Lincoln  returned  $50  of  the  money  borrowed. 

Jan.  17. — Sold  for  cash  merchandise  valued  at  $67.33. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


Jan,  20, — Paid  Robert  Garfield  cash  to  apply  on  account,  I254.25. 

Directions.— Here  value  is  received  by  Robert  Garfield  and  he  is  debited 
(charged)  with  the  amount.    The  cash  account  is  credited. 

21, — Received  from  James  Arthur  cash  I250  to  apply  on 
account. 


/an. 


Jan. 
JsLn, 

Jan, 


22, — Bought  for  cash  merchandise  costing  I364.20. 

27, — Sold  merchandise  invoiced  at   I421.40  on  credit    to 

James  Arthur. 

30. — Paid  a  wages  bill  of  $12  in  cash. 

Directions. — When  all  the  ledger  entries  have  been  made,  the  next  step  is  to 

make  out  what  is  called  a  trial  balance.    This  is  simply  a  statement  of  the  total 

debits  and  total  credits  in  the  several  accounts.    Write  it  on  the  back  of  the 

ledger  sheet.    The  total  debits  should  equal  the  total  credits.    The  correct  trial 


Debits. 

TRIAL  BALANCE. 

Credits. 

1707 

100 
1577 

39 

83 
80 

60 

30 

.     (Student)  .   .   ,    -   .   . 

904 
1363 

1316 
622 
250 

25 
70 

53 
95 

•    • 

.   .   .  Cash  .   . 

James  Lincoln 
.  Merchandise  . 

Robert  Garfield 
James  Arthur 
.  .    Wages    .   . 

4507 

43 

4507 

43 

balance  of  this  ledger  exercise  is  given  here.  A  merchant  cannot  find  his  gain 
or  loss  without  taking  stock  ;  that  is,  valuing,  usually  at  cost  prices,  the  goods 
remaining  unsold.  The  list  of  such  goods,  with  prices,  is  called  the  stock  sheet 
or  inventory.  Suppose  that  on  January  31  you  take  stock  and  find  on  hand  (un- 
sold) merchandise  valued  at  $743.17.  Now  open  an  account  called  "  I,oss  and 
Gain,"  and  another  called  "Resources  and  I^iabilities "  and  proceed  to  close  the 
ledger  accounts. 

Directions  for  Closing:  the  Ledger. 

Begin  by  entering  the  inventory  in  the  merchandise  account.  It  will  appear 
on  the  right-hand  side  in  red  inky  as  follows:  "January  31.  Resource,  $743.17." 
Now  find  the  gain  or  loss  on  merchandise.  In  this  instance  it  is  a  gain  of  $482.10. 
This  will  be  written,  in  red  ink,  on  the  left-hand  side,  as  follows:  "January  31. 
Gain,  $482.10."  If  the  account  had  shown  a  loss,  the  entry  would  have  been  on 
the  right-hand  side.  The  merchandise  account  should  now  be  ruled  up  as  shown 
here.    Remember  to  make  these  closing  entries  in  red  ink : 

MERCHANDISE. 


Jan. 
«• 

«« 

7 
10 
22 

3^ 

Gain 

If. 
364 

482 

45 
95 
20 

10 

Jan. 
<( 

9 
12 

14 
17 
27 

3^ 

/Resource  .... 

421 
743 

25 
25 
30 
33 
40 

^7 

2059 

70 

2059 

70 

BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


n 


The  cash  account  may  be  closed  next.    On  the  credit  side  write  "  January  3L 

Resource,  $ "  (in  red  ink)  for  the  amount  of  cash  on  hand  and  rule  up  the 

account.    Close  the  expense  account  by  writing  "January  31.    I^oss,  | "(in 

red  ink)  on  the  right-hand  side  for  the  difference.  Wages  account  is  closed  in  the 
same  way.  To  close  James  I^incoln's  account,  write  on  the  right-hand  side 
"January  31.  Resource,  $50"  (in  red  ink).  This  shows  that  he  owes  us  this 
amount.  The  closing  entry  of  James  Arthur's  account  will  be  similar.  To  close 
Robert  Garfield's  account,  write  on  the  left-hand  side  "January  31.  I^iability, 
$368.70  "  (in  red  ink).  This  shows  that  we  owe  him  this  amount.  Put  down  the 
totals  in  each  instance,  making  the  sides  of  each  account  balance.  Now  gather 
together  your  gains  and  losses  and  enter  them  in  the  loss  and  gain  account,  the 
losses  on  the  left  and  the  gains  on  the  right.  Note  that  when  you  transfer  any 
item  from  one  account  to  another,  it  is  always  carried  to  the  opposite  side  of  the 
other  account.    All  the  entries  in  this  account,  except  the  closing  entry,  "  Net 


lyOSS  AND  GAIN. 


Jan. 

4t 

3? 

Expense.   .  .   . 

Wages 

Net  Gain    .  .  . 

42 

39 
400 

80 
30 

10 

Jan. 

31 

Merchandise    . 

482 

10 

482 

4S2 

10 

Gain  "  are  entered  in  black  ink.  The  closing  entry,  like  the  closing  entries  in 
other  accounts,  is  entered  in  red  ink.  The  net  gain  is  now  carried  to  the  pro- 
prietor's (student's)  account  and  entered  on  the  right-hand  side,  in  red  ink,  as 
follows:  "January  31.  Net  Gain,  $400."  You  were  worth  $904.25  at  the  begin- 
ning of  the  month  and  you  have  gained  $400,  so  that  your  present  worth  now  is 
$1304.25.  You,  therefore,  write  on  the  left  side  of  your  own  account,  in  red  ink, 
"  January  31.  Present  worth,  $1304.25."  But  the  diflference  between  your  resources 
and  liabilities  should  also  be  your  present  worth,  and  to  prove  the  correctness  of 
your  work  you  gather  together  your  resources  and  liabilities  and  enter  them  in 
the  resource  and  liability  account,  the  resources  at  the  left  and  the  liabilities  at 
the  right.  This  account,  when  closed,  should  appear  as  shown  below.  Write  the 
closing  entry  in  red  and  the  others  in  black  ink.  Note  that  the  present  worth 
appears  on  the  left  side  of  the  proprietor's  account  and  on  the  right  side  of  this. 
This  carries  out  the  principle  that  an  item  which  appears  in  two  accounts  will 
appear  on  the  opposite  sides  of  those  accounts. 


RESOURCES  AND  I^IABIIylTlES. 


Jan. 


31 


Cash 

Merchandise  . 
James  Lincoln 
James  Arthur  . 


344 

13 

Jan. 

31 

743 

17 

50 

535 

65 

1672 

95 

Robert  Garfield 
Present  worth   . 


368 
1672 


24  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

LESSON  XI. 
EXERCISE  34.    Ledger  Practice  Double  Entry. 

Directions. — Knter  these  transactions  in  ledger  form,  make  out  a  trial  balance, 
and  close  the  accounts  as  in  Exercise  33.  Your  net  gain  should  be  1126,34,  and 
your  present  worth  $1019.74. 

Feb,     I. — (Student)  commenced  business  investing  cash  I893.40. 

Feb.     2, — Paid  office  expenses  in  cash  I52.24. 

JEeb.    5. — Paid  rent  of  store  (charge  to  expense)  for  one  month 
in  cash  ^27.50. 

Feb.     7. — Borrowed  |2oo  cash  from  Peter  Simple. 

Feb,     g, — Bought  for  cash  merchandise  costing  I915.65. 

Feb,  12, — Sold  merchandise  for  cash  $625.37. 

Feb,  14, — Bought  on  credit  from  Luke  Sharp  merchandise  in- 
voiced at  $734.80. 

Feb,  If, — Sold  merchandise  invoiced  at  $832.27  on  credit  to  John 
Pluck. 

Feb.  ig. — Paid  a  wages  bill  of  $32.50  in  merchandise  from  the 
store. 

Feb.  20. — Received  from  John  Pluck  cash  $750  to  apply  on  ac- 
count. 

Feb.  SSI, — Returned  $125  of  the  money  borrowed  on  the  7th. 

Feb,  24. — Sold  for  cash  merchandise  valued  at  $76.25. 

Feb,  25, — Paid  Luke  Sharp  cash  to  apply  on  account  $463.90. 

Feb.  26. — Bought  for  cash  merchandise  costing  $97.36. 
LiVentory:  Merchandise  on  hand  valued  at  $420. 


LESSON  XII. 

The  natural  resources  of  a  country  are  mainly  the  mineral 
commodities  and  agricultural  produce  that  it  yields.  The  positions 
and  industries  of  cities  are  usually  fixed  by  natural  conditions,  but  the 
most  powerful  agent  is  the  personal  energy  of  enterprising  and  perse- 
vering men  who,  by  superior  education,  or  scientific  knowledge,  or 
practical  foresight,  have  often  been  able  to  found  industrial  centres 
in  situations  which  no  geographical  considerations  would  suggest  or 
explain. 

EXERCISE  35.    Furniture  Bill. 

Directions. — No  business  form  is  more  common  than  that  of  a  bill.  The  or- 
dinary ruling  is  the  same  as  that  shown  on  the  accompanying  blank.    Sometimes 


BUSINESS  FORMS.  CUSTOMS  AND  ACCOUNTS.  25 

a  price  column  is  ruled  at  the  left  of  the  first  money  column,  but  ordinarily  the 
price  is  written  there  without  any  line  separating  it  from  the  name  of  the  article. 
The  name  invoice  is  given  to  a  bill  from  one  merchant  to  another. 

Items. — On  July  14,  190 — ,  Parsons  &  Richardson,  226.  and  Broad- 
way, New  York  City,  sold  John  Higgins,  963  Madison  Ave.,  on  account 
the  following:  i  antique  ^-bed,  I3.75  ;  i  husk  ^-mattress,  I2.75; 
5  yds.  oil  cloth  at  45c. ;  6  cane  chairs  at  $2.75  ;  2>7}4  yds.  straw  matting 
at  42c.;  I  kitchen  table,  $2  ;  3  yds.  linoleum  at  |i.i2  ;  i  antique  chair, 
I4.25.  Ten  dollars  paid  on  account  at  time  of  ordering.  Make  out 
the  bill  to  be  given  Higgins. 


EXERCISE  36.    Monthly  Statement. 

Directions.— Business  houses  send  out  statements  to  their  customers  on  the 
first  of  each  month.  These  statements  staie  the  amounts  due  without  giving  the 
particular  items  as  given  in  the  original  bills.  < 

Make  out  a  statement  to  be  sent  August  i  to  John  Higgins  by 
Parsons  &  Richardson.  Higgins  pays  the  balance  due  on  August  5. 
Receipt  the  statement.  (Note. — Higgins  should  bring  the  original 
bill  when  he  makes  settlement.  He  could  then  destroy  the  statement 
and  he  would  have  all  the  particulars  and  the  receipt  upon  one 
paper. ) 

Supplementary  Exercises. 

21.  Find  the  cost  of  the  linoleum  4  feet  wide  at  $1.12%  a  yard,  necessary  to 
cover  a  floor  17^4  feet  by  16  feet. 

22.  How  many  yards  of  carpet  27  inches  wide  will  be  required  for  a  hall 
13  feet  3  inches  wide  by  36  feet  long  ? 

23.  A  man  has  no  capital.  He  borrows  $2500  with  which  he  does  business  for 
one  year.  At  the  end  of  the  year  his  total  resources  are  $7469,  and  his  total  lia- 
bilities are  $3684.    Find  his  net  gain. 

24.  If  2%  yards  of  cloth  are  worth  $23. 10,  what  is  the  value  of  16%  yards  at 
the  same  rate  ? 


LESSON  XIll. 

Although  a  merchant's  account  books  are  his  private  records, 

they  should  be  kept  honestly  and  in  good  faith.  They  should  bear 
the  scrutiny  of  creditors,  if  it  become  expedient  or  necessary.  There 
should  be  no  blots,  erasures,  over-writing,  tearing  out  leaves,  nor 
anything  to  throw  suspicion  upon  them.  If  errors  are  made,  they 
should  be  so  corrected  as  to  show  the  original  error,  and  the  reasons 
for  its  correction.     Account  books  should  be  sufficiently  plain  and 


26  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

clear  as  to  be  understood  at  once  by  the  stranger  who  sees  them  for 
the  first  time.  Original  entries  should  be  records  of  actual  trans- 
actions made  upon  the  day  of  their  occurrence,  in  a  plain,  intelligible 
manner.  The  quantity,  quality,  weight,  measure,  number,  name, 
size,  price,  or  any  other  essential  designation  of  the  thing  sold,  should 
be  clearly  stated.  Alterations  or  erasures  in  the  original  records  of 
transactions  will  prevent  their  admission  as  evidence  in  court,  un- 
less such  alterations  can  be  satisfactorily  explained. 


LESSON  XIV. 
EXERCISE  37.    Ledger  Practice  Double  Entry. 

Directions.— Note  that  when  commencing  business  the  proprietor  always 
credits  himself  with  his  resources  and  debits  (charges)  himself  with  his  liabili- 
ties. Enter  these  transactions  in  ledger  form,  make  out  a  trial  balance,  and  then 
close  the  accounts  according  to  the  directions  already  given.  Your  net  loss 
should  be  $415.03,  and  your  present  worth  $1311.92. 

Mar,    I, — Commenced  business  with 

Resources  :  Cash  on  hand  |t2oo. 

Merchandise  on  hand  I849.30. 
Liabilities  :  We  owe  Robert  Perry  I322.35. 

Mar,    S' — Bought  for  cash  merchandise  costing  I722.90. 

Mar,  5. — Sold  Paul  Rubens  merchandise  valued  at  ^936.39  and 
received  in  payment  cash  I720  ;  balance  on  account. 

Mar,    8, — Paid  office  expenses  in  cash  $31.40. 

Mar,  10, — Paid  Robert  Perry  cash  on  account  $193.50. 

Mar,  13, — Bought  of  Robert  Perry  merchandise  invoiced  at 
I804. 20 ;  gave  in  payment  cash  $495  ;  balance  on  ac- 
count. 

Mar,  16, — Paid  a  wages  bill  of  $17  in  goods  from  the  store. 

Mar,  18. — Cash  sales  of  merchandise  this  day  $75.20. 

Mar,  23, — Paul  Rubens  paid  cash  on  account  $100. 

Mar,  24, — Bought  of  Robert  Perry  on  account  merchandise  in- 
voiced at  $64.85. 

Mar,  26, — Lost  cash  $1.37. 

Mar,  27, — Sold  Paul  Rubens  on  account  merchandise  valued  at 
$72.40. 

Mar,  30. — Paid  rent  of  store  for  month  of  March  in  cash  $25. 

Inventory:  Merchandise  on  hand  valued  at  $1000. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  27 

LESSON  XV. 

Commission  merchants  receive  and  sell  goods  belonging  to 
others  for  a  compensation  called  a  commission.  A  shipping  mer- 
chant is  a  person  engaged  in  buying  goods  and  shipping  them  to 
others  to  be  sold.  A  selling  agent  is  a  person  who  represents  a 
manufacturing  establishment  in  its  dealings  with  the  trade.  Its  fac- 
tory may  be  located  in  a  small  town  while  the  selling  agent  has  his 
office  and  samples  in  the  heart  of  a  great  city.  The  selling  agent 
forwards  the  orders  to  the  factory  where  the  goods  are  shipped  and 
accounts  kept. 

EXERCISE  38.    Telegraphic  Order. 

Directions.— If  the  telegraphic  message  is  a  very  important  one,  it  is  well 
to  have  it  repeated,  that  is,  telegraphed  back  to  the  originating  office  for 
comparison.  One  half  of  the  regular  rate  additional  is  charged  for  this.  The 
telegraph  companies  will  not  be  responsible  for  mistakes  or  delays  in  the  trans- 
mission or  delivery  of  unrepeated  messages.  Remember  that  letters  such  as 
C.  O.  D.,  or  figures  as  347  will  each  be  considered  ihree  words  in  reckoning  the 
cost  of  the  telegram.  There  is  no  charge  for  the  address  of  the  person  to  whom 
the  telegram  is  sent  or  for  the  signature  of  the  sender. 

The  German- American  Institute,  243  River  Ave.,  Pittsburgh,  Pa., 
wires  the  Educational  Book  Co. ,  241  Clinton  PI. ,  New  York  City,  for 
one  hundred  and  twenty-five  copies  of  Brown's  Junior  Class  Book  of 
Chemistry,  to  be  sent  by  express  C.  O.  D.  Write  the  telegram  using 
only  ten  words. 

EXERCISE  39.    Bookseller's  Invoice. 

Directions.— Invoices  to  accompany  goods  sent  by  express  C.  O.  D.  should  be 
made  out  in  duplicate.  The  letters  C.  O.  D.  should  follow  "terms:"  and  one 
invoice  should  be  marked  "  Duplicate,"  and  should  be  given  to  the  express  com- 
pany (in  an  envelope  but  unsealed),  with  the  goods.  The  other,  or  original, 
should  be  sent  by  mail  to  the  purchaser. 

Make  out  an  invoice  to  accompany  the  books  ordered  by  telegram 
in  the  preceding  exercise. 


Supplementary  Exercises. 

25.  Prepare  a  deposit  slip  for  a  bank,  the  deposit  to  include  coin,  bank  notes, 
three  local  and  two  out-of-town  checks,  and  an  express  order. 

26.  Rule  off  a  square  on  your  paper  the  size  of  a  business  card,  and  write  or 
print  neatly  in  it  such  matter  as  you  think  would  make  a  suitable  business  card 
for  any  business  with  which  you  are  familiar. 

27.  For  what  do  the  following  abbreviations  stand  :  Prox.,  ultimo,  i.  e.,  MSS., 
pro  tern.,  viz.,  S  ? 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


LESSON  XVI. 

Be  prompt  in  answering  all  correspondence,  specially  so  in  an- 
swering business  letters  and  in  acknowledging  favors.  Paragraph 
and  punctuate  your  letters  carefully.  Except  you  are  writing  about 
two  or  more  decidedly  diflferent  subjects  the  entire  letter  should  be 
written  in  one  paragraph.  Avoid  blots,  erasures,  and  interlineations. 
In  oMcial  correspondence  it  is  better  to  address  the  office  than 
the  officer,  as  "To  the  Secretary  of  the  Navy,  etc. ,  Sir  : ' '  instead  of 
"To  the  Hon.  B K ."  In  ordering  goods  state  ex- 
plicitly the  amount,  kind,  etc.,  and  on  what  terms  wanted.  Always 
state  in  your  letter  the  amount  of  money  you  send  and  in  what  form 
you  send  it.  Business  letters  should  be  clear,  brief,  direct,  and 
gentlemanly.  Everything  irrelevant  to  the  business  in  hand  should 
be  excluded.  Every  business  man  should  keep  an  exact  copy  of  all 
business  letters  which  he  sends,  and  file  all  business  letters  which  he 
receives. 

EXERCISE  40.    Business  Correspondence. 

Homer  Hanscomb,  of  Beaver  Mills,  Pa.,  is  just  opening  business 
for  himself  in  this  small  country  town.  He  wishes  to  trade  largely 
with  the  Berwick  Store  Association,  Ltd.,  of  Berwick,  Pa.  He  writes 
to  them  stating  these  facts.  He  says  that  his  capital  is  limited,  but 
he  has  no  debts  and  gives  good  references.  He  sends  an  order  for 
goods  the  invoice  for  which  amounts  to  1836.40.  He  asks  three 
months'  credit.  As  correspondent  for  the  Berwick  Store  Association 
answer  this  letter.  State  that  order  is  filled  and  tell  how  goods  are 
shipped.  Arrange  your  own  terms  and  give  particulars.  State 
when  your  traveler  will  call  and  any  other  particulars  which  you 
think  necessary. 


LESSON  XVH. 

The  manufacture  of  paper  forms  one  of  the  most  important  in- 
dustries of  the  United  States.  Paper  is  usually  put  up  in  reams  and 
bundles,  and  sold  by  the  pound.  The  price  per  pound  varies  from 
3  cents  for  ordinary  newspaper  stock  to  20  cents  or  more  for  good 
writing  paper.  Good  book  or  magazine  paper  can  be  bought  for  from 
6  to  7  cents  a  pound.  The  weight  of  paper  is  given  in  pounds  per 
ream  and  the  size  is  given  in  inches,  as  22  by  28,  24  by  36,  etc 
There  are  480  sheets  in  a  ream  and  two  reams  in  a  bundle. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  29 

EXERCISE  41.    Paper  Invoice. 

The  Wallace  Paper  Company,  391  Federal  St.,  Chicago,  on  June  19, 
19—,  sold  J.  G.  Watson  &  Co.,  Chicago,  the  following  bill  of  paper :  2 
Rms.  Cream  Laid,  24  X  28,  60  lbs.,  6>^c.;  3^  Rms.  ledger,  18  X  22, 
30  lbs.,  T2C.;  14X  Rms,  Machine  Finish,  28  X  36,  70  lbs.,  6^c.;  12^ 
Rms.  Laid  Cover,  22  X  28,  50  lbs. ,  9c. ;  48)^  Rms.  White  Laid,  36  X  42, 
80  lbs.,  6Xc. ;  2%  Rms.  Bond,  18  X  22,  20  lbs.,  14c.;  6  Rms.  Manilla, 
22  X  28,  40  lbs.,  5c.;  i6>^  Rms.  White  News,  36  X  4o>  4o  lbs.,  4>^c.; 
y/2  Rms,  Linen,  16  X  20,  18  lbs.,  15c.  Cartage  I4.35.  Make  out  the 
invoice  for  The  Wallace  Paper  Company. 

In  indorsing  checks  note  the  following  points :  i.  Write  across 
the  back — not  lengthwise.  2.  Don't  indorse  wrong-end-up.  The  top 
of  the  back  is  the  left  end  of  the  face.  3.  Write  your  name  in  the 
same  way  as  it  appears  on  the  face.  For  instance,  if  the  check  is 
payable  to  W.  Brown^  indorse  W.  Brown;  if  to  Wm.  Brown,  write 
Wm.  Brown.  If  the  spelling  of  your  name  is  wrong,  indorse  twice, 
first  as  written  on  the  face  and  then  correctly.  4.  If  you  are  deposit- 
ing the  check  write  ' '  For  deposit ' '  over  your  indorsement.  This  is 
not  necessary,  but  if  the  check  should  be  lost  before  it  is  deposited 
the  finder  will  be  unable  to  collect  the  amount  which  he  might  be 
able  to  do  if  it  were  simply  indorsed  in  blank,  that  is,  with  your  name 
only.     5.  If  you  wish  to  make  the  check  payable  to  some  particular 

person  by  indorsing,  write  '■''Pay  to L^A"^.^). or  order,''''  and 

under  this  write  your  own  name  as  written  on  the  face.  Do  not 
carry  around  indorsed  checks  loosely.  Such  checks  are  payable  to 
bearer  and  may  be  collected  by  any  one.  If  you  receive  a  check 
which  has  been  transferred  to  you  by  a  blank  indorsement  and  you 
wish  to  hold  it  a  day  or  two,  write  over  the  indorsement  the  words 

''Pay  to  the  order  of (y.9?.?sELF.). .'>     This  is  allowable  legally. 

The  check  cannot  then  be  collected  until  you  indorse  it.  You  may 
stop  payment  of  your  check  any  time  before  it  is  presented  at  the 
bank  by  notifying  the  paying  teller  not  to  pay  it.  If  you  have  de- 
posited a  check  and  it  is  returned  through  your  bank  marked  **No 
funds,"  it  signifies  that  the  check  is  worthless  and  that  the  person 
upon  whose  account  it  was  drawn  has  no  funds  to  meet  it.  The  best 
thing  to  do  in  such  a  case  is  to  hold  the  protested  check  as  evidence  of 
the  debt  and  write  the  person  who  sent  it  to  you  giving  particulars 
and  asking  for  an  explanation. 

EXERCISE  42.    Bank  Check. 

Guy  Mannering  keeps  his  money  in  the  West  Philadelphia  jBank. 
His  last  check  drawn  was  No.  409.  He  writes  a  check  for  $3.37  in 
favor  of  Walter  Scott.  Scott  indorses  the  check  transferring  it  to 
Robert  Roy.     Write  the  check  including  indorsement. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


Supplementary  Exercises. 

28.  A  manufacturing  concern  desires  to  issue  5000  copies  of  a  sixteen  page 
catalogue.  The  catalogue  page  measures  7  X  12  untrimmed.  They  buy  24  X  28, 
60  lb.  paper  at  6J^c.  The  composition  (setting  of  type)  costs  $3  a  page,  the 
press-work  $2,50  per  M.,  and  the  binding  $2  per  M.  Find  the  entire  cost  of  the 
catalogues. 

29.  On  Monday  morning  you  have  cash  $79.42  in  your  cash  drawer,  and  the 
balance  in  your  bank  to  your  credit  is  $704.95.  During  the  day  you  receive  bills 
and  silver  $496.80,  and  a  check  for  $49.36,  and  you  pay  out  in  cash  (bills  and  silver) 
$102.93.  You  deposit  $346.20,  and  you  issue  three  checks  ($47.93  ;  $168.40  ;  $3.96)  in 
payment  of  bills.  On  Tuesday  morning  you  deposit  all  the  money  remaining  on 
hand.    What  should  your  bank  balance  be  then  ? 


LESSON  XVIII. 

Wholesale  dealers  send  out  travelers,  or  drummers^  who  carry 
samples  of  the  goods  for  sale.  -Frequently  the  traveler  starts  out 
with  his  samples  from  six  months  to  a  year  in  advance  of  the  time 
of  delivery.  It  is  quite  a  common  thing  for  the  retailer  to  order  from 
samples,  merchandise  which  at  the  time  of  placing  the  order  may  not 
even  be  manufactured.  Goods  on  approval  means  that  the  buyer 
intends  reserving  the  right  of  accepting  or  refusing  the  bargain  upon 
examination  of  the  goods. 

EXERCISES :  Statements  of  Losses  and  Gains. 

Exercise  43.— Provisions.  Value  of  provisions  on  hand  Jan.  i, 
^2468.30.  Bought  during  the  year  for  cash  provisions  costing  $1362,93. 
Bought  on  credit  provisions  costing  $2406. 25.  Cash  sales  during  the 
year  amounted  to  I2468.36.  Credit  sales  during  the  year  amounted  to 
I2014.32.  Gross  expenses  $426,37.  Accounts  against  others  which 
cannot  be  collected  1213,47.  Value  of  provisions  remaining  on  hand 
Dec.  31,  $2469.34.  Make  out  a  financial  statement  showing^  the  gain 
or  loss. 

Exercise  44.— Dry  Goods.  Value  of  dry  goods  on  hand  Jan.  i, 
$2043,20.  Bought  during  the  year  dry  goods  costing  $1427,25.  Sold 
during  the  year  dry  goods  for  $3005,65,  Ivost  by  fire  dry  goods  valued 
at  $204,30,  upon  which  insurance  $150  was  received.  Value  of  dry 
^oods  on  hand  Dec  31,  $804.37.  Make  out  a  financial  statement  show- 
ing the  gain  or  loss. 

Exercise  45.— Groceries.  Value  of  groceries  on  hand  Jan.  i, 
$3256,80,  Cash  on  hand,  $1396.75.  Accounts  due  us  amounting  to 
$369.45.  Accounts  which  we  owe  amounting  to  $732.37.  On  Dec.  31 
we  have  on  hand  groceries  valued  at  $2468.22  and  cash  $1693.25.  We 
owe  accounts  amounting  to  $760.55,  and  others  owe  us  $2694.23,  Our 
gross  expenses  for  the  year  were  $727.37,  Make  out  a  financial  state- 
ment showing  the  gain  or  losg, 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


Exercise  46.— Hardware.  Borrowed  $5000  Jan.  I  to  invest  in  hard- 
ware. Gross  purchases  of  hardware  during  the  year  amounted  to 
19846.25,  and  gross  sales  to  ^7634.30.  On  Dec.  31  we  owe  accounts 
(exclusive  of  money  borrowed)  amounting  to  I2463.90,  and  others 
owe  us  I4256.37.  We  have  cash  on  hand  J53684.25  and  hardware 
I2684.25.  Make  out  a  statement  showing  our  financial  condition 
Dec.  31. 

Exercise  4;r.-^Lumber.  Value  of  lumber  and  logs  on  hand  Jan.  i, 
$3247.20.  Bought  during  the  year  logs  at  a  cost  of  1^2468.34.  Manu- 
factured lumber  valued  at  $3946.90  at  an  expense  for  labor  of  I932.60. 
Other  expenses  $137.35.  Sold  lumber  during  the  year  for  I3124.37. 
Lumber  and  logs  on  hand  at  the  end  of  the  year  valued  at  $3020. 
Make  out  a  financial  statement  showing  the  gain  or  loss. 

Exercise  48.— Silks.  Value  of  silks  and  raw  material  on  hand  Jan. 
I,  $976.93.  Bought  during  the  year  raw  material  costing  $1372.43. 
Manufactured  during  the  year  silks  valued  at  $1724.80  at  an  expense 
for  labor,  etc.,  of  $322.90.  Sold  during  the  year  silks  for  $2090.20. 
On  hand  at  the  close  of  the  year  raw  material  valued  at  $736.80  and 
silks  valued  at  $839.45.  Make  out  a  financial  statement  showing  the 
gain  or  loss. 

Exercise  49.— Canned  Fruits.  Value  of  merchandise  on  hand  Jan. 
I,  $2003.25.  Cash  on  hand  Jan.  i,  $724.30.  Others  owe  US$836.95 
and  we  owe  others  $724. 26.  At  the  end  of  the  year  we  have  on  hand 
merchandise  $1632.40  and  cash  $3421.26.  We  owe  on  account  $936.29 
and  have  accounts  in  our  favor  amounting  to  $2693.35.  Accounts  in 
our  favor  amounting  to  $376.94  are  considered  bad  debts.  Make  out  a 
financial  statement  showing  the  gain  or  loss. 

Exercise  50.— Real  Estate.  Value  of  property  o'vmed  Jan.  i, 
$9846.20.  Cash  on  hand  $7243.20.  Built  houses  during  the  year  at  a 
cost  of  $6324.25.  Other  expenses  $376.90.  Collected  rents  $984.25. 
Paid  taxes  $243.80.  House  valued  at  $1200  burned.  Received  insur- 
ance $750.  Property  owned  Dec.  31,  valued  at  $18,920.  Make  out  a 
statement  showing  the  year's  gain  or  loss. 

Exercise  51.— DrugfS.  Value  of  drugs  on  hand  Jan  i,  $4269.30. 
None  bought  during  the  year.  Gross  sales  during  the  year  $2984. 20. 
Total  expenses  $842.31.  Inventory  Dec.  31  shows  drugs  on  hand 
valued  at  $1009.46.  Make  out  a  financial  statement  showing  the  gain 
or  loss. 

Exercise  52.— Live  Stock.  Bought  563  head  of  cattle  at  $45.76  each. 
Kept  them  eleven  weeks  at  an  expense  of  $1.95  each  per  week.  At 
the  end  of  the  seventh  week  twelve  cattle  die.  Their  hides  are  sold 
for  $7.22  each.  The  remaining  cattle  are  sold  for  $73.90  each.  Make 
out  a  statement  showing  the  gain  or  loss. 


34  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

LESSON  XIX. 

Partnership  is  the  voluntary  association  of  two  or  more  persons 
who  agree  with  each  other  to  combine  their  labor,  skill,  or  capital  in 
a  business,  and  to  share  the  gains  and  bear  the  losses  proportionately. 
All  who  are  known  as  partners  of  a  firm  are  liable  for  the  partnership 
debts.  Usually  any  one  partner  can  make  contracts  binding  the  part- 
nership. Each  partner  has  an  equal  right  in  the  management  of  the 
firm's  affairs ;  nor  can  one  exclude  another  from  such  right  or  from 
possession  of  the  partnership  effects.  A  majority  of  a  firm,  acting 
upon  good  faith  and  upon  consultation  with  each  other,  have  power 
to  bind  the  minority.  A  partnership  is  general  when  each  member 
is  responsible  for  the  debts  of  the  firm  to  the  amount  of  his  entire 
property.  A  silent  partner  is  one  who  furnishes  capital,  and 
shares  in  the  profits  and  losses,  but  takes  no  active  part  in  the  manage- 
ment of  the  business.  A  partnership  is  said  to  be  limited  when  one 
or  more  of  the  partners  contributes  a  definite  sum  to  the  capital  of 
the  firm  and  stipulates  that  his  liability  for  losses  and  share  in  the 
profits  shall  be  in  a  certain  ratio  to  his  capital  and  no  more  ;  such 
contracts  are  governed  by  the  laws  of  the  State  where  they  are  made, 
and  must  commonly  be' recorded  by  the  proper  official  and  publicly 
advertised.  A  partnership  may  expire  by  limitation,  that  is,  at  the 
expiration  of  the  time  agreed  upon,  or  it  may  be  dissolved  by  mutual 
consent ;  it  may  be  terminated  also  by  the  bankruptcy  of  the  firm,  or 
by  the  death  of  a  partner.  Surviving  partners  may  alone  have  the 
right  to  dispose  of  and  settle  partnership  property.  The  representa- 
tives of  a  deceased  partner  can  only  call  for  the  rendering  of  an 
account. 

EXERCISE  53.    Blacksmith's  Day  Book. 

Note.— A  blacksmith  should  keep  a  day  book  and  a  ledger.  He  should 
make  his  entries  in  the  day  book  at  such  times  during  the  day  as  he  finds  it  con- 
venient to  do  so.  These  entries  should  include  the  names  of  the  persons  for 
whom  the  work  is  done,  and  also  particulars  of  the  work  and  the  prices.  Ex- 
pense entries  and  cash  payments  should  also  be  made  in  this  book.  The  ledger 
should  contain  all  the  personal  accounts — those  which  the  blacksmith  owes  and 
those  in  his  favor.  Every  transaction  involving  money,  whether  in  cash  or  on 
time,  should  be  recorded  in  the  day  book.  Enter  the  transactions  which  follow  in 
day-book  form. 

Monday^  June  3,  190-. — Paid  rent  of  shop  for  May  in  cash 
I17.50.  Welded  and  set  tire  for  Robert  Hamlin,  45c.  Received  ten 
bushels  oats  from  James  Wood  to  be  credited  on  his  account  at  32c. 
Thomas  Blake's  double  team  shod  all  around.  Three  new  shoes,  ^i.  10. 
Tempered  axe  for  Harry  Ferris,  20c.  Made  new  king-bolt  for  Peter 
Hender's  wagon,  35c.     Received  I5  to  apply  on  account  from  Jacob 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  33 

Crabtree.  Bought  one  ton  coal,  I4.50/  Tuesday,  June  4.— Put 
ten  new  teeth  in  harrow  for  Robert  Hamlin,  80c.  Made  a  log-chain 
swivel  for  Harry  Ferris,  35c.  Mended  wagon  brace  for  Wallace  Bruce, 
15c.  Sent  $25  by  registered  mail  to  Tweed  Iron  Co.,  Pittsburgh,  Pa., 
to  apply  on  account.  Made  staple  and  ring  for  neck  yoke  for  James 
Miles.  Mended  double-tree  for  Henry  Holmes,  75c.  Cash  orders 
to-day,  I3.75.  Wednesday,  June  5. — Repaired  gate  for  Richard 
Ball,  $1.60.  Reset  old  springs  for  Arthur  Bums,  85c.  Received  cash 
on  account  from  John  lyoughead,  |io. 

Supplementary  Exercises. 

30.  A  fanner  bought  a  20-acre  field  of  ripe  wheat  for  $225 ;  he  paid  $1.45  an 
acre  for  cutting  and  saving,  4  cents  a  bushel  for  threshing  and  cleaning,  and  $2.25 
a  load  (40  bushels)  for  teaming ;  the  wheat  yielded  23  bushels  to  the  acre,  and  was 
sold  for  I1.43     bushel.    How  much  did  the  farmer  gain  or  lose  ? 

31.  A  milk  dealer  buys  32  ten-gallon  cans  of  milk  each  day  at  $1.75  a  can.  He 
keeps  three  delivery  wagons  at  an  expense  of  I1.85  each  a  day,  and  sells  milk  at 
7  cents  a  quart.    Find  his  gain  in  ten  weeks,  including  Sundays. 


LESSON  XX. 

The  current  of  trade  naturally  tends  to  flow  from  places  where 
there  is  an  abundant  supply  of  any  commodity  to  those  where  there  is  a 
scarcity  and  a  demand.  Thus  more  wheat  is  grown  in  America  than 
can  be  consumed,  more  must  be  needed  in  Europe  than  can  be  grown, 
so  that  wheat  ships  are  always  crossing  the  Atlantic  from  west  to  east. 
Besides  the  ever  varying  tariff  systems  of  the  world,  trade  is  subject 
to  a  variety  of  minor  restrictions.  Foreign  trade  is  the  exchange 
of  merchandise  which  takes  place  between  two  different  nations. 
Domestic  trade  is  home  trade,  that  is,  trade  between  our  own 
cities  and  towns.  Import  trade  refers  to  goods  brought  into  the 
country  from  abroad,  and  export  trade  refers  to  merchandise  raised 
or  manufactured  here  and  sent  abroad  for  sale. 

EXERCISE  54.    Dry  Goods  Invoices. 

Note. — The  salesman  writes  the  order  on  his  order  blank  with  the  address  of 
the  customer.  The  complete  statement  or  bill  is  delivered  with  the  goods  or  is 
sent  by  mail.  The  methods  of  checking  and  recording  orders  differ  in  different 
houses. 

Sale  I. — On  October  13,190 — ,  Messrs.  Haybridge  &  Hatter  sold 
the  following  articles  to  Mrs.  Charles  Lawrence,  18  High  Holborn  St.: 
5  yds.  braid,  5c.;  2  prs.  pillow-cases,  I1.50  ;  3^  yds.  velvet,  I1.40 ; 
3  handkerchiefs,  25c.;  i  spool  silk,  75c.;  ^  yd.  ruching,  60c.;  2  chil- 
dren's suits,  $2,75  ;  I  umbrella,  |i.75  ;  3  prs.  hose,  40c.;  2  prs.  gloves, 
$1.25;  I  doz.  towels,  $2;  15)4  yds.  dress  goods,  62c.;  2^  yds.  lace, 
40c.     Make  out  the  bill  to  go  with  the  goods. 


34  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

Sale  2, — On  October  19, 190—,  Messrs.  Haybridge  &  Hatter  sold 
the  following  articles  to  Miss  Jennie  Adair,  43  Dagmar  St.:  5  yds. 
print,  13c.;  %  yd.  veiling,  80c.;  uYz  yds.  cheviot,  37>^c.;  i  water- 
proof, $4.50;  4^  yds.  ribbon,  i6c.;  Yz  yd.  velvet,  |i.io;  2  prs.  hose, 
35c.;  2  ties,  37KC.;  5  yds.  lace,  85c.;  i2>^  yds.  silk,  $1.35;  5  yds. 
lining,  20c.;  i  parasol,  I3.25. 

The  gold  coins  of  the  United  States  are  the  quarter-eagle  (2 >^ -dol- 
lar piece),  the  half-eagle  (5-dollar  piece),  the  eagle  (lo-dollar  piece), 
and  the  double-eagle.  The  paper  money  of  the  United  States  is 
of  four  diiferent  kinds :  Treasury  gold  certificates  certify  that 
there  have  been  deposited  in  the  treasury  of  the  United  States  gold 
dollars  to  the  amount  of  the  bill,  and  that  these  are  payable  to  the 
bearer  on  demand.  They  are  issued  in  denominations  of  $20  and 
upwards.  Treasury  silver  certificates  call  for  silver  instead  of 
gold.  They  are  issued  in  all  the  ordinary  denominations.  The 
treasury  notes  certify  that  the  United  States  will  pay  the  bearer 
the  amount  of  the  note  in  coin.  They  are  issued  in  all  the  ordinary 
denominations.  The  national  bank  notes  are  issued  by  national 
banks  and  are  secured  by  United  States  bonds  deposited  with  the 
treasurer  of  the  United  States  by  the  banks  issuing  them.  They  are 
issued  in  denominations  of  $5  and  upwards.  When  we  say  that  cer- 
tain money  is  legal  tender  we  mean  that  it  can  legally  (lawfully) 
be  tendered  (presented)  in  payment  of  debt.  A  creditor  may  refuse 
to  accept  a  check,  or  draft,  or  express  order,  etc.,  but  he  cannot 
legally  refuse  to  accept  authorized  money.  The  national  bank  notes 
are  legal  tender  for  all  debts,  except  duties  on  imports.  Other 
government  money  is  legal  tender  for  any  debt  whether  public  or 
private. 

EXERCISE  55.    Bank  Check. 

Henry  Cromwell  keeps  his  money  in  the  Peoples  Bank,  Philadel- 
phia. He  wishes  to  order  some  books  by  mail  from  John  Brown, 
Publisher,  3948  State  St.,  Boston.  The  order  calls  for  $9.35.  Write  a 
check  to  accompany  this  order.  So  word  the  check  that  if  lost  in  the 
mails  no  other  John  Brown  can  collect  it.  John  Brown's  book-keeper, 
Harold  Saunderson,  has  power  of  attorney  to  indorse  checks  for 
Brown.     He  indorses  this  one  for  deposit.     Write  the  indorsement. 

Supplementary  Exercises. 

32.  You  have  a  house  which  you  desire  to  sell.  Write  an  advertisement 
describing  fully  your  property. 

33.  Write  a  receipt  for  a  month's  rent  received  from  Thomas  Hardy  who  lives 
in  your  house  at  246  Willow  Ave. 


BUSINESS  FORMS.  CUSTOMS  AND  ACCOUNTS.  35 

LESSON  XXI. 
EXERCISE  56.    Official  Correspondence  (Copying:). 

Every  person  who  acts  in  the  capacity  of  a  secretary  or  amanuensis 
should  be  able  to  read  copy  easily  and  to  transcribe  it  correctly  and 
neatly.  Copy  the  photo-reproduction  of  an  official  letter  given  on 
the  sheet  which  corresponds  with  this  exercise.  Write  in  all  inter- 
lineations in  their  proper  places  and  make  any  corrections  necessary. 
The  numbers  indicate  the  beginnings  of  paragraphs.  Do  not  write 
them  in  your  copy. 

Supplementary  Exercises. 

34.  Find  the  value  in  American  money  of  a  fVells  Fargo  Express  Order  for 
£25  i6j.  8rf.     (Exchange  14.86%. ) 

35.  A  courtyard,  each  side  of  which  is  100  yards,  is  to  have  two  paved  walks 
from  sides  to  sides  and  crossing  each  other  at  the  centre.  The  walks  are  7  ft.  6  in. 
wide,  and  cost  for  paving  $1.2,7%  a  square  yard.  Find  the  entire  expense  of  the 
paving. 


LESSON  XXII. 

The  separation  of  a  transaction  into  its  debit  and  credit  elements 
is  called  Journalizing,  This  is  done  mentally  when  transferring 
the  record  from  the  original  entry  to  the  ledger.  The  method  of 
writing  down  journal  entries  in  a  journal  is  antiquated  and  a  great 
waste  of  time.  Accounts  are  classified  under  a  variety  of  headings. 
Personal  accounts  are  accounts  with  persons,  firms,  and  corpora- 
tions, for  the  purpose  of  showing  the  concern's  dealings  with  them. 
The  proprietor's  account  is  really  a  personal  account  sustaining 
the  same  relation  to  the  concern  that  other  personal  accounts  do. 
The  diflference  is  usually  a  resource  showing  what  the  concern  owes 
the  proprietor.  If  the  proprietor  keeps  a  private  account  it  will 
really  be  an  expense  account  showing  the  sums  drawn  from  the  busi- 
ness for  private  yse.  The  cash  account  represents  the  cash  received 
and  paid,  and  the  merchandise  account  the  merchandise  bought 
and  sold.  All  expenses  may  be  put  under  one  heading  called 
expense,  or  several  accounts  such  as  wages,  insurance,  etc.,  may  be 
opened. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


EXERCISE  5r.    Ledger  Practice.    Double  Entry, 

Note.— The  ledger  accounts  should  give  a  complete  outline  of  every  transaction. 
If,  for  instance,  you  sell  A.  B.  merchandise  invoiced  at  $255,  and  he  pays  cash  $io<\ 
the  balance  to  remain  on  open  account,  you  should  debit  his  account  with  the 
entire  $255,  and  credit  it  with  the  cash  payment. 

April    I, — Commenced  business  with 

Resources  :  Cash  on  hand,  I984.26. 

Flour  :  175  bbls.  valued  at  ^54- 25. 
lyiabilities  :  We  owe  William  Scott,  1 135. 67. 
April    ^. — Paid  rent    of  warehouse  one   month  in  cash,   $^0. 

( Expense. ) 
April    4. — Bought  for  cash  43  bbls.  flour,  invoiced  at  I4.10. 
April    6. — Sold  for  cash  104  bbls.  flour  at  I4.75. 
April    7. — Borrowed  I150  from  Henry  Dickens. 
April  10, — Sold  Henry  Dickens  48  bbls.  flour  at  I4. 90;  received 

in  payment,  cash  I85  ;  balance  on  account. 
April  12. — Bought  of  William  Scott  207  bbls.  flour  invoiced  at 

I4.15  ;  paid  him  cash  ^250  ;  balance  on  account. 
April  15. — Returned  the  money  borrowed  from  Henry  Dickens. 
April  17, — Sold  Henry  Dickens  148  bbls.  flour  at  I5.12  ;  received 

in  payment,  cash  ^214  ;  balance  on  account. 
April  18. — Paid  office  expenses  in  cash,  I14.97. 
April  ZZ. — Paid  William  Scott  cash  on  account,  ^95. 
April  z6, — Henry  Dickens  failed,  paying  50  cents  on  the  dollar. 

We  receive   one-half   the  full  amount  due,  in  cash. 

(Charge  balance  to  "  Loss  and  Gain.") 
April  30. — ^Sold  for  cash  all  the  flour  remaining  on  hand  at  $4.35. 


LESSON  XXIIl 


EXERCISE  58.    Plumber's  Bill. 


On  March  14,  ipo^,  James  W.  Dudley,  Boston,  Plumber,  renders  a 
bill  to  R.  M.  Higgins,  204  Columbia  Ave. ,  containing  the  following 
items  :  2-1^^  Couplings,  13c. ;  4-^^^  Soldered  Nipples,  25c. ;  2-}(^^  Gas 
Check,  75c. ;  1-%^^  Ell,  15c. ;  2-^^^  Short  Nipple,  9c. ;  12  lbs.  Lead  Pipe, 
8Xc. ;  I  lb.  Solder,  25c.;  Connecting  Gas  Meter,  8oc. ;  }(  Day's  Time, 
2  men,  I4.    Make  out  this  bill.   Receipt  it  (per  yourself)  on  March  25. 

EXERCISE  59.    Receipt. 

Write  (per  yourself)  for  Philip  B.  Low  &  Co.  a  receipt  for  I92.43 
in  favor  of  Robert  Orland,  in  settlement,  of  bills  of  Sept.  13  and  Oct, 
5, 190 — .     Date  the  receipt  Nov.  i,  190 — . 


f 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


Supplementary  Exercises. 

36.  Find  the  cost  of  the  paper  for  2400  7  by  12  16-page  pamphlets,  the  size  of 
the  paper  being  24  by  28,  and  the  weight  40  lbs. .  at  6J^  cents  a  pound. 

37.  Find  the  cost  of  ten  miles  of  barbed  wire  at  sJ^  cents  a  pound,  supposing 
one  pound  to  stretch  9  ft.  7  in. 


LESSON  XXIV. 

Salesmen  usually  make  change  by  addition.  They  have  the 
money  to  count  out,  and  in  doing  so,  they  add  to  the  amount  of  the 
purchase  until  they  reach  the  amount  of  the  bill  presented.  For 
example,  if  you  buy  something  worth  ^3.35  and  present  a  |io  bill  in 
payment,  you  will  probably  receive  in  return  5c.,  loc,  50c.,  ^i,  and 
|5,  the  salesman  saying  40,  50,  $4,  ^5,  $10.  This  method  is  least  liable 
to  error. 

EXERCISE  60.    Bookseller's  Cash  Book. 

Note. — The  form  of  cash  book  given  in  Exercise  2  is  suitable  for  small  dealers 
in  almost  any  line  of  retail  merchandising.  The  transactions  given  below  are 
taken  from  the  cash  records  of  a  bookseller  in  a  countty  town. 

September,  190—  (Write  the  name  of  the  month  and  the  year  at 
the  top  of  the  page).  1.  Balance  on  hand,  ^143.96.  Received  1 13. 92 
from  William  Robinson  in  full  settlement  of  his  account.  Paid  rent 
of  store  for  August  in  cash,  I25.  Cash  sales  this  day,  $74. 25.  2.  Paid 
Harry  Watson's  wages  for  August,  $32.50.  Took  out  for  private  use 
cash,  |i25.  Received  from  W.  B.  Walker  cash  on  account,  $1$.  Cash 
sales  this  day,  $85.63.  3.  Sent  my  check  for  $54. 76  to  Houghton, 
Mifflin  &  Co. ,  Boston,  in  full  settlement  of  their  account.  Paid  a 
carpenter  for  putting  in  new  shelving,  |8. 25.  Received  cash  $9. 32  from 
S.  David  in  full  of  account.  Received  cash  $32.43  from  Dr.  F.  Snel- 
grove  in  full  of  account.  Cash  sales  this  day,  $63.90.  Sent  my  check 
for  $28.32  to  Harper  Bros.,  New  York,  in  full  settlement  of  their  ac- 
count. Paid  gas  account  for  August,  $9. 24.  Paid  for  office  stationery, 
$3.96.  Paid  Donnelly  &  Co.  for  printing  circulars,  $11.30.  Took  out 
for  private  use,  $10.     4.  (Balance  on  hand,  $ ). 

Supplementary  Exercises. 

38.  If  you  have  no  change  except  25-cent,  50-cent,  and  %i  pieces,  how  can  you 
make  change  for  $7.25  out  of  $10  ? 

39.  You  owe  $5.75,  but  have  only  a  $5  bill,  a  |i  bill,  and  a  25-cent  piece;  the 
collector  has  nothing  smaller  than  a  half-dollar;  how  can  change  be  made? 

40.  You  owe  $4.40,  and  have  a  $10 bill,  a  silver  dollar,  and  three  lo-cent  pieces; 
the  person  to  whom  you  are  paying  the  money  has  %^  in  bills,  three  25-cent  piecea 
and  a  5-cent  piece :  how  can  change  be  made  p 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


LESSON  XXV. 

For  their  correspondence  business  men  generally  use  single 
sheets  letter  size,  with  printed  business  headings.  The  paper  should 
be,  whether  letter  or  note  size,  the  best  that  the  writer  can  afiFord. 
Unruled  paper  is  to  be  preferred.  A  letter-sheet  should  be  folded 
from  the  bottom  forward,  bringing  the  lower  edge  near  to  the  top,  so 
as  to  make  the  half-length  a  little  shorter  than  the  envelope,  then 
breaking  the  fold.  Next  fold  twice  the  other  way,  beginning  at  the  left 
edge,  folding  towards  the  right.  A  note-sheet  should  be  folded  twice, 
from  the  bottom  forward. 

EXERCISE  61.    Business  Correspondence. 

The  Wheeler  Manufacturing  Company  of  Cortland,  N.  Y. ,  have 
written  The  Richmond  Manufacturing  Company,  Richmond,  Va., 
ordering  500  sets  of  certain  mouldings  which  they  use  in  manufactur- 
ing carriages.  They  have  never  ordered  goods  from  your  house 
before  and  ask  the  '  *  usual  30  days'  credit. ' '  You  find  them  well-rated 
but  have  not  in  stock  the  particular  moulding  which  they  describe. 
You  have  something  else  which  is  very  similar  and  which  may  answer 
their  purpose.  If  they  should  order  a  thousand  you  could  aflford  to 
manufacture  what  their  order  calls  for.  Answer  fully  the  letter  for 
the  Richmond  house. 

Supplementary  Exercises. 

Al.  Find  the  cost  of  digging  a  ditch  9  feet  deep  and  3K  feet  wide  around  the 
outside  of  a  rectangular  piece  of  ground  40  feet  by  60  feet,  at  30  cents  per  cubic 
yard. 

42.  Two  farmers,  A  and  B,  buy  a  horse  for  $175,  A  paying  $95  and  B  the  bal- 
ance. A  pastures  him  for  27  weeks,  and  works  him  101  days.  B  pastures  him 
13  weeks,  and  works  him  35  days.  They  value  the  pasture  at  50  cents  a  week,  and 
the  work  at  30  cents  a  day.  At  the  end  of  the  season  they  sell  the  horse  for  |200. 
How  much  of  this  money  should  each  receive  ? 


LESSON   XXVI. 

Factories  and  business  houses  employing  a  large  number  of  work- 
men are  obliged  to  adopt  various  methods  of  keeping  their  time,  that 
is,  the  number  of  hours  they  work.  In  some  houses  time-tickets 
are  made  use  of.  These  are  punched  morning  and  evening.  They 
are  turned  in  at  the  end  of  the  week  and  are  used  in  making  up  the 
pay-roll.    In  concerns  having  several  departments  with  a  foreman 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  39 

at  the  head  of  each,  the  task  of  keeping  the  time  of  the  workmen  is 
usually  assigned  to  the  foremen,  each  of  whom  keeps  a  time-book  for 
his  department. 

EXERCISE  62.    Manufacturer's  Pay  Roll. 

Make  a  proper  record  of  the  labor  and  wages  having  given  the 
hours  of  service  for  each  day  and  the  amount  paid  per  hour  :  Fred. 
Rogers,  8-7^^-9-9-7-8,  36c.  Thomas  Gibson,  9-9-9-8;^-7-8,  36c. 
Henry  Wilkins,  9-8;^ -9-0-0-5,  30c.  Max  O'Reilly,  8-8>^ -9-9-9-4, 
28c.  Chas.  H.  Ray,  9-8-8-8-0-4^,  26c.  William  Norman,  8-0-9-9- 
8)4-o,  40c.  Thomas  Renders,  7^^-8-9-9-8-4,  22c.  John  Manly,  9-9-9- 
9-9-4>  35c.  James  Stanley,  9-8^^-9-9-9-4,  22c.  Robert  Potter,  8-9- 
8^^-9-9-5,  36c.  Lawrence  Harkness,  9-9-8-8-8^-4,  30c.  Consider 
nine  hours  a  full  day.  If  a  workman  is  absent  for  any  period  of  time 
less  than  one-half  hour  mark  him  absent  for  the  full  half  hour. 

EXERCISE  63.    Bank  Check. 

Not*.— In  writing  a  check  to  draw  money  for  wages  write  "  Bzy  to  the  order 
of  Wages  "  or  "  Pay  to  the  order  of  Pay- Roll:''  Such  a  check  must  be  presented  at 
the  bank  by  some  one  known  by  the  paying-teller  to  be  authorized  to  draw  the 
money.  It  is  not  the  same  in  effect  as  a  check  written  payable  to  bearer.  All  paid 
checks  are  returned  by  the  bank  at  the  end  of  the  month  and  the  checks  drawn 
for  wages  will  be  yonchera  for  this  particular  expense.  A  voucher  is  a  proof  of 
a  particular  payment  or  fact. 

Wm.  B.  Kennedy  &  Co. ,  Cleveland,  desire  to  draw  for  the  payment 
of  wages  the  sum  of  $139.42  from  the  amount  to  their  credit  in  the 
German- American  Trust  and  Title  Company.  Write  the  check.  No, 
493. 

Supplementary  Exercises. 

43.  A  foreman  receives  $2.75  a  day,  and  50  cents  an  hour  for  overtime.  During 
a  certain  week  he  works  from  6.30  a.  m.  until  10.30  p.  m.  (less  two  hours  for  meals) 
each  day.    If  a  full  day  is  nine  hours,  what  are  his  wages  for  that  week  ? 

44.  A  foreman  receives  $3  a  day,  and  60  cents  an  hour  for  overtime.  He  is 
charged  20  cents  for  each  hour  he  is  absent.  His  time  for  a  particular  week  is  as 
follows:  \i%,  hrs.,  ^%  hrs.,  9>%  hrs.,  13  hrs.,  \o%  hrs.,  and  5  hrs.  If  a  full  day  is 
8  hours,  what  should  his  wages  for  the  week  amount  to  ? 


LESSON  XXVII. 

In  account-keeping  a  book  of  original  entry  is  a  book  in 
which  the  transactions  are  first  entered.  This  may  be  a  day  book,  or 
order  book,  or  cash  book,  or  check  book,  or  sales  book,  etc.  The 
process  of  transferring  the  record  of  transactions  from  the  books  of 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


original  entry  to  the  ledger  is  called  posting.    The  trial  balance 

is  a  list  of  the  total  debits  and  credits  arranged  according  to  their 
respective  accounts.  If  the  footings  of  the  two  columns  are  the  same 
it  is  a  proof  that  the  posting  has  been  correctly  done.  It  is  not,  how- 
ever, positive  proof,  as  an  entry  may  have  been  posted  to  the  right 
side  of  the  ledger  but  to  the  wrong  account.  Such  errors  can  be 
discovered  only  by  checking  the  posting  carefully.  Whenever  an 
account  balances,  that  is,  when  it  is  paid  in  full,  or  when  both  sides 
add  the  same,  it  should  be  ruled  up.  New  items  should  be  entered 
under  the  rulings. 

EXERCISE  64.    Ledger  Practice.    Double  Entry. 

May    I, — Commenced  business  with 

Resources :  Cash  on  hand,  JJ5976.43. 

Merchandise  valued  at  I842.40. 
Heber  Hamilton  owes  us  1 137. 43. 
Liabilities  :  We  owe  Peter  Bmery  ^304. 22. 
May    3, — Paid  rent  of  store  for  one  month  in  cash  I27.50. 
May    4, — Bought  for  cash  merchandise  costing  f  296.37. 

May    5. — Sold  Chas.  Chapman  merchandise,  I342.36 ;  received  in 
payment  cash  I232  ;  balance  on  account. 

May    7, — Paid  office  expenses  in  cash  I14.97. 

May    8, — Paid  a  wages  bill  of  ^5x9. 30  in  goods  from  the  store. 

May  10. — Heber  Hamilton  paid  cash  on  account  ^100. 

May  12 » — Bought  of  Peter  Emery  merchandise  I439. 20 ;  gave  in 
payment  cash  $300  ;  balance  on  account. 

May  15' — Borrowed  cash  I125  from  Thomas  Wallace. 

May  J7.-— Sold  Thomas  Wallace  on  account  merchandise,  ^^276. 42. 

May  18, — Memo  :  Merchandise  valued  at  $200  burned  last  night 

May  ig, — Received  insurance  |5i75  on  merchandise  burned  yestei» 
day. 

May  2i» — Cash  sales  of  merchandise  this  day,  I98.42. 

May  23' — Paid  Peter  Emery  cash  on  account,  I147.50. 

May  25' — Chas.  Chapman  paid  cash  on  account,  $75. 

May  27' — Paid  a  wages  bill  of  I9.80  in  cash. 

May  2g. — Cash  sales  of  merchandise  this  day,  $137.40. 

May  31,— host  cash,  $15. 

Inventory:  Merchandise  on  hand  valued  at  1342.37- 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  41 


LESSON  XXVIII. 

Insurance  is  a  contract  whereby  one  party  undertakes,  for  an 
agreed  consideration,  to  indemnify  another  party  for  loss  on  a  specific 
risk,  under  certain  conditions.  Insurers  are  sometimes  called  under- 
writers. The  principal  kinds  of  insurance  are  dre,  life,  marine, 
and  accident.  The  written  contract  is  called  the  policy.  A  mis- 
representation of  an  essential  fact  by  the  insured  will  make  a  policy 
void.  Goods  in  transit  are  usually  insured  for  enough  to  cover  cost 
and  transportation.  The  premium  is  the  amount  of  money  paid  by 
the  insured  to  the  insurance  company. 

EXERCISE  65.    Grocer's  Order  Book. 

Orders. — Monday,  July  5,  igo—.  Thomas  Wallace,  96  Fair- 
mount  Ave.;  4  lbs.  Gr.  Sugar,  5^c. ;  3  lbs.  Rio  Coffee,  37c.;  2  Lamp 

Chimneys,  8c.    (C.  O.  D.) James  Peterkin,   19  W.  Water  St.;  2 

cans  Salmon,  I2}4c.;  2  cans  Sardines,   15c.;  2  baskets  Grapes,  20c.; 

2  lbs.  Butter,  32c.;  3  loaves  Bread,   7c.;  i  Broom,  25c. Mrs.  K. 

B.  Wood,  21  W.  Water  St.;  8  qts.  Cranberries,  13c.;  3  lbs.  Crackers, 
I2C. ;  I  box  Strawberries,    15c.;  2  lbs.  Rio  Coffee,  37c.;  }4  lb.  E.  B. 

Tea,  60C. ;  2  cans  Tomatoes,  14c. Tuesday,  July  6,  igo — .     J.  H. 

Barber,  14  Summit  St.;  6  lbs.  Butter,  32c. Mrs.  B.  C.  Connor, 

204Woodlawn  Ave.;  Sack  of  XX  Flour,  I1.38  (Paid). Willard 

Allen,  25  Woodlawn  Ave. ;  5  gals.  Oil,  9c. ;  3  lbs.  White  Sugar,  7c. ;  i 
gal.  Vinegar,  22c.;  5  lbs.  E.  B.  Tea,  58c.;  3  lbs.  Wafers,  13c.;  Yeast 
Cake,  2c. Wednesday,  July  7,  igo — .  Dr.  J.  B.  Gould,  24  Ben- 
nington St.;  %  lb.  Cloves,  40c.;  3  lbs.  Rice,  9c.;  2  lbs.  Raisins,  12c.; 

I   bot.    Bluing,    12c.;    2   bot.    Catsup,    25c. J.  E.  Lawrence,   18 

Maple  St. ;  6  Assorted  Jelly  Paste,  20c. ;  2  cans  Corn,  i6c. ;  i  can  Cleve- 
land Baking  Powder,  I1.35  ;  5  bars  Ivory  Soap,  9c.;  2  pkgs.  Wheatlet, 

I2C.;  5  lbs.  Assorted  Crackers,  13c. Peter  Cartwright,  18  Wesley 

St.;  I  bbl.  Flour,  I6.25 ;  2  bu.  Potatoes,  75c. 


LESSON  XXIX. 

A  note  is  a  written  promise  to  pay  a  specified  sum  of  money.  At 
the  time  of  a  note's  issue,  that  is,  when  signed  and  delivered,  two 
parties  are  connected  with  it :  the  maker  and  the  payee.  The 
maker  is  the  person  who  signs  or  promises  to  pay  the  note,  and  the 
payee  is  the  person  to  whom  or  to  whose  order  the  note  is  made 
payable.  A  time  note  is  one  which  is  made  payable  at  the  expira- 
tion of  a  certain  specified  time.  A  demand  note  is  made  payable 
"on  demand,"  that  is,  whenever  payment  is  demanded.  A  nego- 
tiable note  is  one  which  is  so  worded  as  to  be  legally  transferable. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


A  note  to  be  made  negotiable,  must  contain  the  word  "order  "  or  the 
word  ** bearer,"  that  is,  it  must  be  payable  to  the  bearer  or  to  the 
order  of  the  payee.  "To  the  order  of"  means  to  any  person  the 
payee  orders  it  paid  to.  Notes  drawn  payable  to  bearer  are  trans- 
ferable without  indorsement.  Notes  drawn  payable  to  order  must  be 
indorsed  by  the  payee.  A  non-negotiable  note  is  one  which  is 
made  payable  to  a  certain  payee  only.  A  joint  note  is  one  which 
two  or  more  persons  jointly  promise  to  pay  ;  each  person  joining  in 
such  promise  must  put  his  signature  to  the  note  ;  each  person  signing 
a  joint  note  is  held  liable  for  his  share  and  no  more.  A  note  may 
be  written  on  any  kind  of  paper  in  ink  or  in  pencil.  All  notes 
should  be  dated.  The  amount  should  be  written  in  both  figures  and 
words.  Better  make  notes  payable  at  some  definite  place.  Witb 
interest  inserted  in  a  note,  makes  interest  payable  from  its  date ; 
if  not  inserted,  interest  is  payable  only  in  case  the  note  is  not  paid 
at  maturity,  and  then  only  from  and  after  maturity.  A  note  can- 
not be  collected  before  maturity,  A  note  is  void  if  dated  on  Sun- 
day. 

EXERCISE  66.    Hardware  Invoice. 

) 

Baker,  Walker  &  Co.,  dealers  in  hardware,  465  Centre  St.,  Chicago, 
sold  to  Robert  Dix,  894  Lake  Ave.,  the  following  articles  :  6  Master 
Keys  to  sample,  50c. ;  12  doz.  Sash  I^ifts,  12c. ;  6  Anchor  Bolts,  i  X  24, 
85c. ;  6  quires  Sand  Paper,  :^  i,  12c. ;  3  g:ross  Screws,  ^''^  i6c. ;  2  Saw 
Files,  6c. ;  2  Machine  Bolts,  }4  X  i8^''»  3oc-;  i  Coes  Wrench,  12'"',  75c.; 
I  Sheet  Norway  Iron,  60  lbs.,  8c.;  i  pr.  Crucible  Ton^s  (special  to 
order),  $1.75.  Making  and  putting  up  15  Galvanized  Wire  Guards  as 
per  estimate,  $137.50.  Make  out  the  bill  and  receipt  upon  it  a  cash 
payment  of  $100. 

EXERCISE  6t.    Promissory  Note. 

Note.— Read  carefully  the  information  about  promissory  notes  given  in  a  pre- 
ceding paragraph.  In  writing  in  the  money  amounts  follow  the  directions 
regarding  bank  checks  already  given.  Notes  which  are  not  made  payable  at  a 
particular  place  are  payable  at  the  oflace  or  residence  of  the  maker. 

William  Pennington  owes  Benjamin  Frankford  the  sum  of  I243.27. 
He  gives  him,  to-day,  his  note  at  60  days  for  the  amount.  The  note 
is  made  payable  at  the  Bradstreet  National  Bank,  Philadelphia. 
Frankford  transfers  the  note  by  indorsement  to  Daniel  Webber  who 
transfers  it  by  indorsement  to  Roger  Williamson.  Williamson  de- 
posits the  note  in  the  Westminster  Bank,  Providence,  R.  I.,  for  col- 
lection.    Write  the  note  and  the  correct  indorsements. 

Questions. — When  will  this  note  mature  ?  If  Pennington  fails  to  pay  it  what 
is  necessary  to  hold  the  indorsers  ?  Are  Frankford  and  Webber  equally  respon- 
sible ?  If  Williamson  collects  from  Frankford  can  Frankford  collect  from  Webber? 
How  about  Frankford  if  Williamson  collects  from  Webber?  Tell  fully  how  the 
note  will  reach  Pennington  from  Providence, 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  43 


Supplementary  Exercise, 

45.    A  business  house  has  offered  you  a  position  which  you  are  unable  to  filL 
Write  them  a  very  cordial  letter  declining  the  offer  and  giving  your  reasons  fully. 


LESSON  XXX. 

EXERaSE  68.    Manufacturer's  Pay-Rail. 

Make  a  proper  record  of  the  labor  and  wages,  having  given  the 
hours  of  service  for  each  day  and  the  amount  paid  per  hour  :  Henry 
Albertson,  3-8-8-8-8-7,  35c.  Jonas  Simon,  4-8-8-8-8-6>^ ,  35c.  Wm. 
Barker,  8-7>^-6>^-3-4-7,  32c.  Johnson  Clark,  6-6>^-7>^-8>^-8-8,  30c. 
John  Smith,  8-8-8-8-8-8,  40c.  Robert  Walker,  7^^-7^-7^-6-6-3, 
45c.  Jas.  Patterson,  7-7)^-6-5-4-6,  45c.  William  Brown,  8-8-6-6-7- 
7,  35c.  Rob't  Brown,  8-7 >^ -3 >^ -0-0-0,  25c.  Patrick  O'Brien,  8-8-0- 
7/^-2>-4>  37c.  Walter  Darling  8-8-8-2-0-3^,  37c.  Considernine 
hours  a  full  day. 

Business  men  derive  many  advantages  from  keeping  their  money 
on  deposit  in  a  bank.  There  is  less  danger  of  loss  by  burglary  ;  the 
payments  can  be  made  more  conveniently  by  check  than  by  counting 
out  bills  and  silver  ;  other  people's  checks  can  be  deposited  for  col- 
lection ;  and  the  acquaintance  with  the  bank  may  aflford  the  privilege 
of  borrowing  on  notes  or  other  securities. 

EXERQSE  69.    Bank  Check. 

W.  E.  Kennedy  keeps  his  money  in  the  German- American  Trust 
&  Title  Company,  of  Cleveland.  He  has  a  balance  to  his  credit  of 
I746.93.  The  last  check  he  drew  was  No.  536.  He  owes  Joseph 
Clarkson,  Elgin,  111.,  I23.35,  and  sends  him  to-day  his  check  for 
the  amount.  Clarkson  receives  the  check  but  has  no  bank  account 
and  cannot  deposit  it.  He  therefore  turns  it  over  to  his  grocers, 
Palmer  &  Kilduff,  who  deposit  it  in  the  Time-Keepers'  National  Bank 
of  Elgin.      Write  the  check  with  the  correct  indorsements. 

Questions.— When  is  it  better  to  put  the  address  or  the  business  or  profession 
after  the  name  of  the  person  in  whose  favor  a  check  is  drawn?  What  is  the 
advantage  of  numbering  checks  ? 

Supplementary  Exercises. 

46.  Find  the  cost  of  2250  lbs.  of  coal  at  $5.25  a  ton. 

47.  Find  the  cost  of  5250  lbs.  of  pork  at  $7.35  a  hundredweight. 

48.  Find  the  cost  of  4820  sheets  of  paper  at  75c.  a  ream. 

49.  A  fruit  dealer  bought  four  barrels  of  apples  at  $3.75  a  barrel ;  the  four 
barrels  contained  6345  apples ;  he  sold  them  at  the  rate  of  3  for  5  cents.  How 
much  did  he  gain  ? 


14  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

50.  A  dealer  bought  seven  gross  of  lead-pencils  at  $2.50  a  gross,  and  sold  them 
«t  15  cents  a  dozen.    How  much  did  he  lose  ? 

Si.  a  man  bought  a  house  and  lot  for  $8263 ;  he  built  an  addition  to  the  house 
^t  a  cost  of  $1743 ;  the  house  was  destroyed  by  fire  and  he  received  insurance 
^750 ;  he  then  sold  the  lot  for  $2025.     How  much  did  he  lose  ?     • 


LESSON  XXXI. 

EXERCISE  to.    Business  Correspondence. 

Charles  Henry  Bowlipp,  of  Fernwood,  Pa. ,  owes  F.  A.  Black  & 
Son,  Philadelphia,  a  bill  of  I137.40  for  papering  and  decorating.  The 
bill  has  been  rendered  several  times  and  the  account  has  been  standing 
almost  a  year.  A  letter  comes  to-day  stating  that  the  bill  is  in  excess 
of  the  contract  price  which  was  I125.  This  statement  Black  &  Son 
find  to  be  correct,  but  they  find  also  that  Mr.  Bowlipp  ordered  the 
contract  arrangement  changed  with  reference  to  the  library,  adding 
instead  much  more  expensive  decoration.  This  change  besides  being 
more  expensive  caused  a  loss  of  time  of  two  whole  days  for  two  men. 
Write  for  Black  &  Son  a  courteous  reply  offering  a  full  explanation 
and  urging  immediate  settlement. 

Supplementary  Exercises. 

52.  Find  the  interest  on  I247.50  for  3  years,  3  months,  at  7  per  cent. 

53.  Find  the  interest  on  $362.80  for  221  days  at  8  per  cent. 

54.  Find  the  interest  on  the  promissory  note  in  Exercise  67  at  7  per  cent. 


LESSON  XXXII. 
EXERCISE  ri.    Ledger  Practice.    Double  Entry. 

June  I. — Commenced  business  with  cash,  |2ooo. 

June  2. — Paid  rent  of  warehouse  I35  for  one  month  in  cash. 

June  4, — Bought  for  cash  merchandise  costing  I863.90. 

June  5. — Paid  office  expenses  in  cash,  J519.83. 

June  7. — Bought  from  Robert  Reid,  merchandise  valued  at 
$963. 27  ;  gave  him  in  payment  my  note  at  30  days  for 
I450  ;  balance  on  account. 

Directions. — Open  an  account  and  call  it  **  Bills  Payable.^''  You  first  debit 
** Merchandise"  and  credit  ^'Robert  Reid"  with  the  $963.27.  Then  you  charge 
*^ Robert  Reid"  with  the  $450  which  you  pay  him  and  instead  of  crediting  your 
"  Cash,"  for  it  was  not  cash,  you  credit  your  "  Bills  Payable  "  account.  Every 
time  you  give  your  own  note  in  payment  of  debt  or  for  any  other  purpose  you 
credit  your  "  Bills  Payable  "  account. 


BUSfNESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


Jane  9. — Sold  merchandise  invoiced  at  |i  264. 80  to  Silas  Penlope ; 
received  in  payment  cash  $500,  and  his  note  at  one 
month  for  the  balance. 

Directions.— Open  an  account  and  call  it  *^  Bills  Receivable.''*  "Whenever  you 
receive  a  note  which  is  due  to  you  rather  than  by  you,  you  debit  or  charge  the 
'•  Bills  Receivable  "  account.  In  this  transaction  you  should  first  credit  "  Merchan- 
dise "  with  the  $1264.80.  You  debit  "  Penlope  "  with  the  same  amount  even  though 
he  has  paid  the  bill  in  full,  for  although  a  note  is  payment,  the  sale  will  not  be  per- 
fected until  the  note  has  been  paid,  and  for  fear  of  any  failure  on  Penlope's  part 
to  pay  the  note  you  had  better  have  a  complete  history  of  the  transaction.  You 
credit  ^^ Penlope*''  with  cash  $500  and  with  the  note  for  $764.80  and  rule  up  the  ac- 
count.   You  debit  your  "  Bills  Receivable  "  account  with  the  $764.80. 

June  m, — Bought  merchandise  invoiced  at  $764.22  from  Robert 
Reid  ;  gave  in  payment  cash  ^20 ;  balance  on  ao 
count. 

June  15. — Sold  merchandise  valued  at  $984.29  to  Silas  Penlope 
on  account. 

June  18, — Gave  my  note  for  $150  at  20  days  to  Robert  Reid  to 
apply  on  account. 

June  20, — Received  from  Silas  Penlope  his  note  at  30  days  for 
$750  to  apply  on  account. 

June  25- — Sold  merchandise  for  cash,  $39.85. 

June  27, — Gave  Robert  Reid  cash  on  account  $100. 

June  30, — Received  from  Silas  Penlope  cash  $125  to  apply  on 
account. 

Inventory:  Merchandise  on  hand  valued  at  $697.80. 


.      LESSON  XXXIII. 

An  indorser  of  a  note  is  any  person  who  writes  his  name  on  the 
back  of  it,  and  by  so  doing  guarantees  its  payment.  The  day  of 
maturity  is  the  day  on  which  a  note  becomes  legally  due.  In  several 
of  the  States  a  note  is  not  legally  due  until  three  days,  called  days 
of  grace,  after  the  expiration  of  the  time  specified  in  the  note. 
When  a  note  is  presented  for  payment  at  maturity  and  is  not  paid,  it 
is  usually  protested,  that  is,  a  notary  public  makes  a  formal  state- 
ment that  the  note  was  presented  for  payment  and  payment  was 
refused.  If  there  are  no  indorsers  on  the  note  it  is  not  necessary  to 
do  this.  The  object  of  protesting  paper  is  to  hold  the  indorsers  liable 
for  the  payment  of  the  money  if  the  maker  of  the  note  fails  to  pay  it 


BUSINESS  FORMS,  CUSTCfMS  AND  ACCOUNTS. 


EXERaSE  72.    Promissory  Note. 

John  Hamden  gives  his  ninety-day  note  for  $123.75  to  Oliver 
Cromwell.  The  note  is  dated  March  13, 190 — ,  and  draws  interest  at 
7  per  cent.  It  is  payable  at  the  Tenth  National  Bank.  Cromwell 
transfers  the  note  by  indorsement  to  Walter  Raleigh  who  transfers  it 
by  indorsement  to  John  Milton.  Write  the  note  including  indorse- 
ments.    Give  the  date  of  maturity. 

Questions.— What  will  the  interest  amount  to?  If  Hamden  fails  to  pay  the 
note  to  whom  can  Milton  apply  providing  that  he  has  the  note  protested  ?  Can 
Raleigh  transfer  the  note  without  indorsing  ?    Can  Cromwell  ? 

Note.— The  words  "  with  interest  at  7  per  cent "  may  be  written  in  anywhere ; 
under  the  line  upon  which  the  amount  of  the  note  is  written  will  answer.  If  this 
note  is  transferred  after  indorsement,  that  is,  if  Milton  wishes  to  sell  it,  he 
should  pin  it  to  the  protest  papers  and  allow  all  to  go  together. 

Checks  should  be  numbered  so  that  each  one  can  be  accounted 
for.  The  numbers  are  for  your  own  convenience  and  not  for  the  con- 
venience of  the  bank.  It  is  important  that  your  check  book  be 
correctly  kept  so  that  you  can  tell  at  any  time  how  much  money  you 
have  in  the  bank.  At  the  end  of  each  month  your  small  bank  book 
should  be  left  at  the  bank  so  that  the  bookkeeper  of  the  bank  may 
balance  it.  It  may  happen  that  your  bank  book  will  show  a  larger 
balance  than  your  check  book.  You  will  understand  by  this,  if  both 
have  been  correctly  kept,  that  there  are  checks  out  which  have  not 
yet  been  presented  at  your  bank  for  payment.  You  can  find  out 
which  these  are  by  checking  over  the  paid  checks  that  have  been  re- 
turned to  you  with  your  bank  book.  The  unpaid  checks  may  be  pre- 
sented at  any  time,  so  that  your  actual  balance  is  that  shown  by  your 
check  book. 

EXERCISE  r3.    Bank  Check. 

J.  R.  Wood  &  Son  keep  their  money  in  the  Northwestern  National 
Bank  of  Pittsburgh.  The  last  check  they  drew  was  No.  469.  They 
wish  to  draw  I246. 27  to-day  for  their  monthly  pay-roll.  Write  the 
check. 

Questions.— How  does  this  check  differ  from  one  drawn  to  bearer  f  If  J.  R. 
Wood  &  Son  send  the  check  with  an  employe  not  known  at  the  bank,  will  he  be 
able  to  get  the  money  ? 

EXERCISE  74.    Credit  Memorandum. 

Note. — When  goods  that  have  been  charged  to  a  customer  are  returned  by 
him  as  unsatisfactory  or  for  other  reasons,  it  is  customary  for  the  merchant  to 
give  for  the  amount  of  the  goods  returned  a  "credit  memorandum"  which  the 
customer  should  keep  and  present  as  cash  when  paying  the  original  bill. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  47 

Mrs.  H.  B.  Warren,  West  Chester,  returned  to  Peterkin  &  Watson 
5^  yards  Red  Flannel,  bought  yesterday  with  other  goods,  and  charged 
on  account,  and  receives  a  credit  memorandum.  Write  the  memo- 
randum.    Date  to-day. 

Supplementary  Exercises. 

55.  Find  the  interest  on  I432.25  for  231  days  at  8  per  cent. 

56.  Find  the  interest  on  $221.36  for  93  days  at  5  per  cent. 

57.  Find  the  interest  on  I564.95  for  2  years,  3  mouths,  at  4J^  per  cent. 


LESSON  XXXIV. 

In  a  sale  there  must  be  a  change  of  possession,  but  actual  delivery 
is  not  necessary  to  pass  the  title.  A  sale  is  often  made  under  an 
agreement  that  the  title  will  not  pass  until  the  goods  are  paid  for. 
This  is  commonly  the  case  in  buying  on  the  installment  plan.  A 
chattel  mortgage  is  a  sale  ot  personal  property  as  security  for  some 
debt  or  other  obligation,  the  sale  to  be  avoided  by  the  repayment  of 
the  money,  with  interest,  within  a  certain  time.  The  mortgagor  (or 
seller)  usually  retains  the  property  mortgaged  in  his  possession. 
Chattel  mortgages  must  be  recorded  in  the  office  of  the  town  or 
county  clerk  according  to  the  laws  of  the  place  where  they  are  given. 

EXERCISE  75.    Telegraphic  Order. 

The  Bancroft  Book  Company,  of  249  Main  St. ,  St.  Paul,  sends  a 
telegraphic  message  to  HoUingswood  &  Whiting  Company,  for  145 
reams  of  French  bond  paper,  light  blue  tint,  20  X  24,  and  heaviest 
weight  they  have.  Paper  to  be  shipped  by  Merchants'  Dispatch  at 
earliest  possible  date.  Write  this  message.  Do  not  exceed  fifteen 
words. 

EXERCISE  76.    Paper  Invoice. 

Make  out  the  invoice  to  be  sent  the  Bancroft  Book  Company,  St. 
Paul,  in  connection  with  their  telegraphic  order.  The  paper  is 
billed  at  14c.  and  10  per  cent  is  deducted  from  the  bill. 

Supplementary  Exercises. 

58.  You  receive  a  somewhat  worn  $10  gold  piece.  You  find  that  it  weighs  213 
Troy  grains.    What  is  its  value  ? 

59.  If  5  shillings  be  worth  $1.22,  how  much  should  one  receive  for  an  English 
P.  O.  money  order  for  ;^28  135.  9^.  ? 

60.  A  jeweler  sold  a  gold  chain  weighing  4  oz.  12  pwt,  9  gr.,  at  3J^c.  per 
grain.    How  much  did  he  receive  ? 


48  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


LESSON  XXXV. 

The  laws  enacted  by  the  legislature  are  called  statute  law,  while 
those  principles  and  usages  which  rest  for  their  authority  upon  long 
continued  acceptance  and  their  adoption  in  judicial  decisions,  are 
called  common  law. 

An  agreement,  duly  entered  into,  by  competent  parties,  for  a 
legally  sufiQcient  consideration,  to  do  or  not  to  do  some  specific  thing, 
is  a  contract.  It  is  not  necessary  that  such  agreement  be  in  writing. 
If  one  party  to  a  contract  breaks  it  without  the  consent  of  the  other, 
the  other  may  enter  suit  for  damages. 

EXERCISE  Xt.    Invoice. 

Smith  Bros.  &  Co. ,  493  Baltimore  Ave. ,  Media,  Pa. ,  bought  of  the 
E.  R.  Holman-Kreichler  Company,  Philadelphia,  goods  as  follows : 
215  yards  Brussels  Carpet  at  98c. ;  240  yards  Moquette  at  1 1.03  ;  139 
yards  Tapestry  at  72c.;  6  doz.  Porch  Chairs  at  |56. 90  per  doz. ;  8  sets 
Chamber  Furniture  in  Oak  at  $26.35  ;  6  Dining  Tables  at  I4.70;  3 
Parlor  Suites  at  I72. 50.  Make  out  the  bill.  Mark  at  the  lower  left 
hand  corner  "Shipped  by  P.  W.  B.  R.  R."  Date  to-day.  Receipt 
the  bill  after  deducting  the  2  per  cent  for  cash. 

Supplementary  Exercises. 

61.  Goods  ordered  from  you  by  one  of  your  Western  customers  are  delayed 
in  the  factory.  Write  a  letter  giving  particulars  of  the  delay  and  stating  when 
you  can  make  shipment.    Use  names  and  addresses  suggested  by  yourself. 

62.  Tell  in  your  own  words  how  you  would  proceed  to  open  an  account  at  a 
bank,  giving  particulars  of  what  you  would  do  and  of  what  would  be  done  for 
you. 


LESSON  XXXVI. 

A  common  carrier  is  one  whose  regular  business  is  to  carry 
articles  of  personal  property  from  place  to  place  for  the  public.  Ex- 
presses, stages,  railroads,  canal  boats,  steamboats,  teamsters,  ferries, 
etc.,  are  instances  of  common  carriers.  A  common  carrier  must 
carry  for  every  one  who  desires  to  employ  him  and  is  ready  to  pay 
him  his  reasonable  charge,  so  long  as  he  has  accommodations,  and 
holds  himself  out  to  carry  the  kind  of  articles  oflfered.  It  is  the  car- 
rier's duty  to  load  the  goods  carefully  and  to  carry  them  safely  and 
without  unreasonable  delay,  and  he  is  liable  under  certain  conditions 
for  damage  or  loss  while  in  his  possession. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  49 


EXERCISE  rs.    Steamship  Freight  Bill. 

Alex.  Anderson  &  Bro.,  51  Clinton  St.,  Boston,  have  shipped  to 
Chas.  Clark  &  Sons,  Philadelphia  Terminal  Market,  by  the  Boston  & 
Philadelphia  Steamship  Co.,  39  crates  of  Blueberries  invoiced  at  $3.85 
each.  The  rate  of  freight  is  30  cents  a  crate.  The  crates  are  marked 
C.  C.  T.  The  freight  has  been  paid  in  advance  but  there  is  a  Phila- 
delphia storage  charge  of  |5i.4o  and  porterage  of  I1.17.  Make  out 
the  bill  for  freight  and  receipt  it  for  the  agent  per  Philip  Freight- 
handler.     Date  to-day.     Trip  No.  368. 

EXERCISE  t9.    Railway  Freight  Bill. 

The  Atlantic  Hardware  Co.,  494  Batterymarch  St.,  Boston,  have 
ordered  from  Marshall  Eaton,  Bloomfield,  N.  Y.,  25  doz.  sets  of  Easy 
Foot  Horse-shoes.  They  have  been  shipped  via  Albany  in  25  boxes 
each  weighing  73  pounds.  The  boxes  are  marked  A49H.  The  freight 
rate  is  75  cents  per  100  'pounds.  Make  out  the  bill  for  freight.  Date 
to-day.  Progressive  number  4268.  Way-bill  11,967,  dated  four  days  ago. 
B.  &  M.  car  8693.     Receipt  the  bill  for  Benj.  Prompt,  agent  of  the  B.  &  A. 

Supplementary  Exercises. 

63.  A  lawyer  collected  a  debt  of  I3264  and  charged  5  per  cent  for  his  services. 
How  much  did  he  pay  over  ? 

64.  If  ]4  per  cent  of  one-half  of  a  sura  of  money  is  I7.20,  what  is  the  sum  ? 

65.  A  piece  of  property  was  sold  for  $3525,  at  a  loss  of  6  per  cent.  For  how 
much  should  it  have  been  sold  to  gain  I2j^  per  cent  ? 

66.  I  paid  an  attorney  $32.50  for  collecting  a  debt  of  I520.  What  per  cent  of 
the  debt  was  paid  for  collecting  it  ? 


LESSON  XXXVII. 

When  a  reduction  is  made  from  the  nominal  price  of  an  article, 
from  the  amount  of  a  debt,  or  from  the  face  of  a  note,  it  is  called  a 
discount.  Some  kinds  of  merchandise,  books,  furniture,  musical 
instruments,  etc.,  are  often  sold  at  fixed  prices.  Manufacturers  or 
wholesale  dealers  invoice  such  merchandise  to  the  trade,  or  retail 
dealers,  at  these  fixed  or  list  ( catalogue )  prices.  The  list  prices  are 
usually  the  retailer's  selling  prices.  The  manufacturer  or  wholesale 
dealer  allows  the  retailer  a  trade  discount,  which  is  deducted  at  a 
certain  rate  per  cent  from  the  face  of  the  invoice.  When  goods  are 
sold  at  net  prices,  no  discount  is  allowed,  and  the  retailer  adds  to  the 
cost  to  make  his  selling  price.  The  amount  of  discount  allowed  de- 
pends sometimes  upon  the  amount  of  the  order,  and  sometimes  upon 

4 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


the  terms  of  settlement.  Very  often  two  or  more  discounts  are  de- 
ducted in  succession.  Thus  lo  per  cent  and  5  per  cent  oflf,  or  as  it  is 
generally  expressed  in  business,  10  and  5  off,  means  a  discount  of  10 
per  cent  and  then  5  per  cent  from  what  is  left ;  20,  10  and  5  ofiF  means 
three  successive  discounts.  The  result  is  not  affected  by  the  order  in 
which  the  discounts  are  taken. 

EXERCISE  80.    Ledger  Practice.    Double  Entry. 

Directions.— This  July  set  is  a  continuation  of  that  for  June,  The  promissory 
aotes  g^ven  and  received  in  June  mature  this  month.  Enter  the  resources  and 
liabilities  which  you  find  at  the  end  of  June  in  their  respective  accounts  just  the 
lame  as  though  you  were  beginning  an  entirely  new  set. 

July    I, — Paid  rent  of  warehouse  $35  for  one  month  in  cash. 

July    2* — Bought  from  Robert  Reid  on  account  merchandise, 
I964.25. 

July    5. — Sold  Silas  Penlope  on  account  merchandise,  I846.33. 

July    7. — Paid  ofl&ce  expenses  in  cash,  I13.27. 

July    8. — Paid  Robert  Reid  cash  |2oo  to  apply  on  account. 

July    9. — Received  from  Silas  Penlope  cash  I637.50  to  apply  on 
account. 

July  XO, — Paid  my  note  of  $ ^iue  to-day  in  cash. 

July  II. — Paid  my  note  $ due  to-day  in  cash. 

July  12 » — Received  from  Silas  Penlope  his  check  for  $ to 

cover  note  due  to-day. 

July  15. — Bought  for  cash  merchandise  costing  I764.33. 

July  X7. — Sold  for  cash  merchandise  invoiced  at  J5623.36. 

July  18, — Borrowed  on  my  thirty-day  note  I350  from  Walter 
Baker. 

Directions. — Do  not  open  an  account  in  your  ledger  for  Walter  Baker.  It  is  not 
necessary  in  this  instance. 

July  ig* — Ivost  cash,  I7.50. 

July  2I» — Cash  sales  of  merchandise  to-day,  I93.25.   . 

July  23, — Received  from  Silas  Penlope  his  check  for  $ to 

cover  note  due  to-day. 

July  25» — Bought  for  cash  merchandise  costing  I683.22. 

July  27. — Paid  wages  in  cash,  f  17.90. 

July  30, — Paid  Robert  Reid  cash  $ in  full  of  account  to 

date. 

Inventory  :  Merchandise  on  hand  valued  at  ^1842. 6a 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


LESSON  XXXVIII. 

Ifien  is  the  right  of  the  seller  to  hold  goods  sold  until  he  is  paid 
for  them.  As  soon  as  they  pass  out  of  the  seller's  hands,  this  right 
ceases.  Workmen  may  place  a  lien  on  the  building  upon  which  they 
have  been  working,  for  wages  due. 

A  mortgage  is  a  conveyance  of  real  estate  as  security  for  a  debt 
or  other  obligation.  To  foreclose  a  mortgage  is  in  reality  to  take 
possession  of  the  property.  A  clause  is  usually  inserted  in  the  mort- 
gage giving  the  mortgagee  power,  after  a  certain  number  of  days,  to 
sell  the  property  at  public  auction.  The  surplus,  if  any,  belongs  to 
the  mortgagor.  When  a  mortgage  is  discharged  (paid)  such  dis- 
charge should  be  properly  recorded. 

EXERCISE  81.    Manufacturer's  Pay-RoU. 

Make  a  proper  record  of  the  labor  and  wages  having  given  the 
hours  of  service  for  each  day  and  the  amount  paid  per  hour  :  James 
Riley,  4-6-9-8-4-8,  39c.  Daniel  Russell,  8-8-8-8-8-8,  39c.  David 
Shannon,  6^-6>^ -7-8-6-5^ ,  45c.  William  Steele,  8^^-8-7 >^-o-o-6, 45c. 
Frank  A.  Titus,  7-7-7-6)4-6)4-2,  40c.  (|2  advanced).  Isaac  Trainer, 
6 >^ -0-0-7-8-8, 40c.  Joseph  Walters,  7-8-8-8-8-9, 39c.  A.  G.  Rockwood, 
6>^-6-6-7-o-o,  42c.  Matthew  Morgan,  8-8>^-7-7-6-5,  39c.  (dismissed ). 
Wm.  Murphy,  7-8-8-8-8-8,  39c.  ($5  advanced).  Joseph  Fallon,  9-9- 
9-9-9-6,  45c.  Walter  Powers,  7^-6>^-6>^-6^-8-9,  45c.  Peter  Car- 
penter, 8-8-9-7-7-7^,  39c.     Consider  nine  hours  a  full  day. 

Directions.— Suppose  the  amount  due  to  be  $22.47.  Now,  to  pay  this  amount, 
we  need  two  $10  bills,  one  $2  bill,  one  25-cent  piece,  iwo  lo-cent  pieces,  and  two 
i-cent  pieces.  Write  2  in  the  $10  column,  I  in  the  $2  column,  I  in  the  25-cents 
column.  2  in  the  lo-cent  column,  and  2  in  the  i-cent  column.  Remember  always 
to  take  the  largest  bills  or  coins  possible.  Put  a  memorandum  on  the  back  of  the 
check.    See  note  in  connection  with  Exercise  63. 

EXERCISE  82.    Check  for  Wagfcs. 

The  Standard  Mattress  Company  desire  to  draw  a  check  for  the 
wages  necessary  to  pay  off  the  men  whose  names  and  wages  appear 
on  pay-roll  you  have  just  made  out.  Write  the  check.  Sign  it  for 
the  Mattress  Company,  putting  your  own  name  underneath  as  treas- 
urer.    Put  on  the  back  of  the  check  a  memo,  of  the  change  needed. 

Supplementary  Exercises. 

67.  A  dealer  gives  discounts  of  25  and  10  off.  Find  the  net  amount  of  an 
invoice  of  I540. 

68.  One  dealer  gives  a  discount  of  50  per  cent  and  another  gives  on  the  same 
goods  discounts  of  30  per  cent  and  20  per  cent.  Which  is  the  better  discount,  and 
what  will  the  difference  be  on  an  invoice  the  gross  amount  of  which  is  I1340? 

69.  Find  the  interest  on  I243  for  137  days  at  4  per  cent. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


LESSON  XXXIX. 
EXERCISE  83.    Manufacturer's  Invoice. 

Directions. — Manufacturers  of  woolens,  cottons,  etc.,  number  each  kind  of 
goods  manufactured,  and  dealers  in  ordering  an  additional  lot  of  a  particular  kind 
are  required  to  give  the  number.  The  rolls  which  we  see  on  dry  goods  shelves  are 
as  they  come  from  the  looms.  The  number  of  yards  in  the  rolls,  or  pieces  as 
they  are  called,  of  a  particular  kind,  differs  slightly.  A  manufacturer  may  intend 
to  put  up  a  particular  cloth  in  pieces  of  40  yards  each.  When  he  takes  the  pieces 
from  the  looms  he  will  find  that  they  may  measure  all  the  way  from  35  yards  to 
45  yards,  so  that  in  selling,  he  gives  the  actual  measurement  of  each  piece.  The 
number  of  yards  is  usually  on  a  ticket  at  the  end  of  the  roll.  In  writing  the 
number  of  yards  in  the  invoice  omit  the  denominators  of  the  quarter  fractions 
and  write  a  small  two  to  represent  }i. 

The  Berlin  Cotton  Mills,  of  Trenton,  sold  to  John  Pennymaker  & 
Co. ,  476  Euclid  Ave. ,  Cleveland,  the  following  merchandise  :  Case 
^347,  18  pieces  Bleached  Cotton,  ^2046 — 41^  43I  42  40  432  42^  39^  38  39 
40  42^^  43  41  42^  43  47  37  39^ — 8c.  Case  ^348,  27  pieces  Merrimac 
Prints,  #964—30  32\33'  33  34'  36''  3^'  33  34^  3i  33  34'  32^  34  30  33^  32' 
31^  32^  312  30  29^  33  34  32I  33I  32— 634:c.  Case  #349,  24  pieces  Gingham 
#1068—392  33  382  392  40  4i3  42  382  33I  372  362  39  40  412  42  43I  42I  40  342 
362  38  37  40  412 — 9j^c.  Case  #350,  14  pieces  Lonsdale  Muslin,  #407 — 
252  24  23^  22  262  26  242  23^  22  242  20  24^  26  23^ — 7Xc.  Case  #351,  9 
pieces  Cotton  Flannel,  #348—35  36'  37  34^32^  36^  35'  36  34— 14c.  Folio 
146.  Sales  Book  93.  Date  to-day.  Make  out  the  invoice  and  receipt 
it  less  2  per  cent. 

Directions. — Be  careful  to  arrange  the  matter  of  this  invoice  neatly.  I^arge 
dealers  number  all  cases  in  the  order  in  which  they  are  packed  or  shipped. 
Write  j^347,  then  the  18,  then  the  name  of  the  goods,  and  on  the  same  line,  the 
(quality)  number  of  the  goods,  and  then  on  the  lines  following,  the  number  of 
yards  in  each  of  the  several  pieces. 


#347 


18 


Bleached  Cotton,  #2046, 

412  43I  42  40  432  42^  39^  38  39 
40  422  43  41   422  43  47  37  393 


745« 

8 

59 

64 

lyCave  a  blank  line  throughout  after  each  case  entry.  If  the  fraction  is  %  01 
more  add  one  cent ;  if  below  one  half,  drop  it  entirely.  Write  the  numbers  in 
vertical  columns  and  leave  a  small  margin  at  the  left  and  at  the  right. 


Supplementary  Exercises. 

70,  Write  three  short  reading  notices  of  your  goods,  to  be  printed  in  the  local 
column  of  your  village  paper. 

71.  Prepare  (for  printing)  a  circular  letter  to  be  sent  to  your  customers  who 
are  behind  with  their  payments.  Be  careful  to  word  it  in  such  a  way  that  your 
customers  will  not  take  oflfence. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  53 


LESSON  XL. 

The  words  value  received  in  promissory  notes  are  not  le- 
gally necessary.  The  law  does  not  hold  that  acknowledgment  of 
consideration  must  be  expressed,  yet  it  is  advisable  always  to  have  it 
so  expressed.  Notes  are  always  payable  in  money,  A  note  cannot 
be  drawn  payable  upon  certain  conditions,  and  it  must  be  for  a  definite 
amount,  which  should  be  plainly  and  distinctly  written  out  in  full,  in 
words,  in  the  body  of  the  note  ;  the  amount  is  also  usually  expressed 
in  figures  at  one  comer  of  the  paper.  Should  there  be  a  difiference 
between  the  amounts,  that  expressed  in  words  is  taken  as  the  correct 
amount.  In  finding  the  date  of  maturity  it  is  important  to  remem- 
ber that  when  a  note  is  drawn  days  after  date  the  actual  days  must  be 
counted,  and  when  drawn  months  after  date  the  time  is  reckoned  by 
months.  A  note  drawn  March  13  at  60  days  would  be  due,  adding 
three  days  of  grace,  on  May  15.  If  drawn  two  months  after  date  it 
would  be  due  on  May  13  plus  3  days  or  May  16. 

EXERCISE  84.    Promissory  Note. 

Samuel  Weller  owes  Daniel  Quilp  the  sum  of  I183.27.  He  gives 
him,  to-day,  his  note  at  three  months  with  Sampson  Brass  as  indorser. 
The  note  is  made  payable  at  his  residence.  No.  43  Pickwick  Alley. 
Quilp  transfers  the  note  by  indorsement  to  Uriah  Heep,  who  has  it 
discounted  at  the  Royal  Exchange  Bank.  Write  the  note  with  the 
correct  indorsements. 

Questions.— When  will  this  note  mature  ?    If  discounted  the  day  it  is  drawn 

at  7  per  cent  (no  grace),  what  will  the  proceeds  amount  to?  If  Weller  should  be 
absent  when  the  bank  messenger  calls  with  the  note  on  the  day  of  maturity  is  he 
obliged  to  carry  the  note  to  any  other  address  ?  What  is  the  advantage  of  having 
an  indorser?    Is  there  any  limit  to  the  number  of  indorsers? 

The  person  issuing  a  cbeek  may  stop  its  payment  at  any  thne  be- 
fore it  is  presented  at  the  bank  by  notifying  the  bank  not  to  pay  it. 
Checks  are  usually  drawn  payable  to  the  order  of  some  person  or 
firm.  A  check  so  drawn  must  be  indorsed  by  the  person  or  firm  to 
whose  order  it  is  drawn  before  it  can  be  collected.  When  you  apply 
to  a  bank  to  get  a  check  cashed  you  must  be  known  to  the  paying* 
teller  or  else  be  identiAed  by  some  one  who  is  known  at  the  bank. 
If  a  check  is  drawn  payable  to  the  hearer  or  **  Pay  to  the  order  ot 
Bearer,'**  the  bank  will  pay  the  amount  to  any  one  even  a  stranger- 
Such  a  check,  if  lost,  could  be  collected  by  the  finder.  There  are 
some  banks,  however,  that  make  it  a  rule  to  pay  money  to  no  cue 
except  those  who  are  personally  known  to  them.  Banks  usually  re- 
quire checks  to  be  indorsed  whether  drawn  to  order  or  to  bearer.    If 


54  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

you  wish  to  draw  money  from  your  own  account  for  your  own  use, 
write  the  check  **  Pay  to  the  order  of  Cash,*^  and  present  it  at  the  bank 
yourself.     Such  a  check,  of  course,  does  not  need  to  be  indorsed. 

EXERCISE  85.    Bank  Check. 

J.  R.  Wood  &  Son  keep  their  money  on  deposit  in  the  North- 
western National  Bank  of  Pittsburgh.  Their  last  check  number  was 
469.  They  wish  to  order  a  book  costing  I2.75  from  The  Old  Corner 
Bookstore,  Boston.  They  do  not  recall  the  name  of  the  firm  owning 
this  store.     Write  the  check. 

EXERCISE  86.    Credit  Memorandum. 

James  Alexander,  42  Pine  St. ,  West  Chester,  returned  to  Peterkin 
&  Watson  12  yds.  Brussels  Carpet  charged  to  him  yesterday  at  $1.1 2)4- 
They  give  him  a  credit  memorandum  which  he  will  present  as  cash 
when  paying  his  bill.     Write  the  memorandum. 

Supplementary  Exercises. 

72.  Teas  costing  59  cents.  65  cents,  and  76  cents  per  pound,  are  mixed  in 
equal  quantities  and  sold  at  $1  a  pound.    Find  the  gain  per  cent. 

73.  If  goods  are  bought  for  I8728  and  sold  for  I9819,  what  is  the  gain  per 
cent? 

74.  Find  the  interest  on  $216.75  for  148  days  at  7  per  cent. 


LESSON  XLI. 

When  ordering  goods  to  be  delivered  by  express  give  the  address 
precisely.  Country  residents  in  particular,  often  receive  mail  at  one 
office  and  express  at  another.  Express  charges  vary  according  to  the 
character  and  weight  of  the  article  and  the  distance  to  be  carried.  As 
a  rule  the  charges  may  be  prepaid  or  not,  as  the  sender  prefers  ;  but 
on  long  distances  advance  payment  is  sometimes  required.  Express 
agents  will  always  give  receipts  for  the  packages  taken  into  their 
charge  if  so  requested,  and  the  possession  of  such  receipt  may  be  of 
particular  value  when  a  package  has  been  damaged,  delayed  or  lost 
by  the  way.  The  address  of  the  sender  should  always  appear  on  the 
outside.  The  receiver  of  an  express  parcel  is  obliged  to  sign  a  receipt 
when  he  takes  it  from  the  company.  The  word  "  collect "  written  on 
the  lower  left-hand  corner  of  a  C.  O.  D.  invoice,  indicates  that  the 
expressman  is  to  collect  from  the  receiver  of  the  parcel  not  only  its 
C.  O.  D.  value  and  express  charges  (if  not  paid  in  advance),  but  the 
small  fee  which  the  comoaxiy  charges  for  carrying  the  money  back  to 
the  shipper. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  55 


EXERCISE  sr.    C.  0.  D.  Invoice. 

The  Avil  Printing  Company,  of  Philadelphia,  have  manufactured 
for  The  Beryll  Insurance  Company,  396  Maryland  Ave. ,  Baltimore,  the 
following  :  848  Catalogues  as  per  contract,  y^c.  each  ;  500  8  pp.  Fold- 
ers, I27.30;  2000  Circulars,  "Special  to  Agents,"  $17.40;  4000  sheets 
Letter  Paper,  Printed,  I21.50.  They  send  the  entire  lot  by  Adams 
Express,  C.  O.  D.  Make  out  the  invoice  to  be  given  to  the  Express 
Company.  Mark  it  "collect."  Remember  that  this  invoice  should 
be  receipted  by  the  Avil  Printing  Company,  so  that  when  the  Express 
Agent  delivers  the  case  in  Baltimore  he  can  present  a  receipted  bill 
and  collect  the  amount  due.  Write  "Received  payment  C.  O.  D." 
If  a  duplicate  invoice  is  made  out  it  should  be  sent  by  mail  but  should 
not  be  receipted. 

EXERCISE  88.    Express  Company  Receipt. 

Write  the  C.  O.  D.  Receipt  which  the  Adams  Express  Company 
should  give  the  Avil  Printing  Company  upon  delivery  of  the  case  and 
invoice  into  their  hands. 

Supplementary  Exercises. 

75.  The  population  of  a  city  in  1890  was  reported  as  25,410.  It  increased  10 
per  cent  between  1880  and  1890,  and  also  10  per  cent  between  1870  and  1880.  What 
was  its  population  in  1870  ? 

76.  Find  the  interest  on  $236.80  from  April  3,  1894,  to  March  13,  1895,  at  ^%  per 
cent. 

77.  Find  the  cost  of  36 J^  yds.  of  muslin  at  6^c.  a  yard,  less  10  per  cent. 

78.  A  lawyer  collects  for  a  client  48  per  cent  of  a  bill  and  charges  2}^  per  cent 
for  his  trouble.    The  merchant  receives  I234.    What  was  the  original  bill  ? 


LESSON  XLII. 

A  joinOstock  company  is  an  association  of  persons  incorpo- 
rated by  law  for  the  transaction  of  some  special  business  for  a  profit ; 
it  is  not  a  partnership,  and  may  be  continued  beyond  the  natural  lives 
of  its  members  by  their  successors,  but  may  not  engage  in  any  enter- 
prise not  authorized  by  its  charter.  The  benefits  of  co-operation  are 
self-evident.  The  advantages  are  its  longevity,  and  the  concentration 
into  one  large  fund  of  the  small  capitals  of  many  persons.  Certain 
public  franchises  or  rights,  such  as  a  right  of  way  for  a  railroad  or 
canal  are  granted  to  companies  by  legislatures.  A  company  may  hold 
real  estate,  may  sue  and  be  sued  at  law,  and  perform  any  act,  within 
the  limit  of  its  charter,  that  may  lawfully  be  done  by  an  individual* 


BUSINESS  FORMS.  CUSTOMS  AND  ACCOUNTS. 


There  is  a  distinction  between  a  corporation  and  a  joint-stock  com- 
pany as  to  the  liability  of  the  stockholders.  The  stockholders  elect 
the  board  of  directors  and  they  elect  the  president  and  other  offi- 
cers. A  stockholder  has  no  claim  on  the  company  except  for  his  share 
of  the  profits  earned.  The  dividend  of  a  company  is  its  net  profit, 
divided  into  as  many  equal  parts  as  there  are  shares.  A  trust  is  an 
association  of  dealers  for  the  purpose  of  controlling  the  sale  of  a  cer- 
tain article.  A  syndicate  is  an  association  of  persons  for  the  purpose 
of  securing  a  large  amount  of  capital  to  carry  on  a  business  enterprise. 

EXERCISE  89.    Ledger  Practice.    Double  Entry. 

Aug*  X. — Commenced  business  with  cash  $2500  and  the  store  and 
lot  which  I  own,  valued  at  |54ooo,  upon  which  there  is 
a  mortgage  of  J5i2oo. 

Directions.— The  $1200  will  appear  on  the  debit  side  of  your  own  account  and 
on  the  credit  side  of  "  Mortgage  Payable  "  account. 

Aug,    2. — Deposited  $2342.20  in  the  Farmers'  Bank  to  my  credit. 

Directions. — In  this  set  keep  a  separate  bank  account  for  the  money  in  the 
bank.  Usually  all  cash,  whether  in  the  safe  or  till  or  bank,  is  kept  in  one  account. 
Call  the  bank  account  simply  "  Farmers'  Bank."  Debit  it  for  all  money  deposited 
and  credit  it  for  all  checks  drawn. 

Aug.  3, — Bought  office  furniture  costing  I57.38.  Gave  my  check 
in  payment.     (Charge  expense. ) 

Aug,  4, — Bought  merchandise  invoiced  at  $2764.20  from  Hay- 
bridge  &  Hatter  ;  gave  in  payment  my  check  for  $750, 
a  note  at  20  days  for  $825,  balance  on  account. 

Aug,    6. — Paid  a  wages  bill  of  $14.37  in  cash  from  the  till. 

Aug.  9. — Sold  John  Pennymaker  &  Co.  merchandise  invoiced  at 
$1843.72;  received  in  payment  their  check  for  $942, 
their  note  at  60  days  for  $726.90,  balance  on  account. 

Aug,  m. — Had  John  Pennymaker  &  Co.'s  note  of  the  ninth  dis- 
counted at  the  Farmers'  Bank  to-day  at  6  per  cent.  Pro- 
ceeds placed  to  my  credit. 

Aug,  13, — Cash  sales  of  merchandise  this  day,  $497.20. 

Aug,  17, — Deposited  cash  $1263.90  in  the  Farmers'  Bank. 

Aug,  18, — Paid  the  first  payment  of  $250  on  the  mortgage  on  store 
and  lot  by  check. 

Aug,  ig, — Bought  merchandise  invoiced  at  $984.36.  Gave  my 
check  in  payment. 

Aug.  20, — Sold  part  of  my  store  lot  to  Jordan,  Jennings  &  Co., 
for  $842.50.  Received  in  payment  their  check,  which 
I  deposit  in  my  bank. 

Aug,  21, — Built  an  addition  to  my  store  at  an  expense  of  $137.50. 
Of  this  sum  $19.46  was  paid  in  cash  from  the  safe,  $50 
by  check,  and  the  balance  in  goods  from  the  store. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  57 

Aug,  23. — Sent  Ilaybridge  &  Hatter  my  check  for  $12$,  to  apply 

on  account. 
Aug,  24., — Received  from  John  Penn3rmaker  &  Co.  cash  $112.50, 

to  apply  on  account. 
Aug.  25. — Cash  sales  of  merchandise  this  day,  I396.80. 
Aug,  27, — My  note  due  to-day  is  charged  to  my  account  in  the 

bank. 
Aug,  31, — Deposited  all  the  cash  on  hand. 
Inventory : — Real  Estate,  valued  at I3500  00 

Merchandise,  valued  at 1563  90 

Office  Furniture,  valued  at ,         40  00 


LESSON  XLIII. 
EXERCISE  90.    Balance  Sheet. 

The  balance  sheet  should  be  made  out  before  any  of  the  accounts 
are  closed.  The  August  balance  sheet  will  contain  the  following 
accounts:  (Student);  Farmers'  Bank;  Real  Estate;  Merchandise;  Ex- 
pense ;  Haybridge  &  Hatter ;  Mortgage  Payable  ;  John  Pennymaker 
&  Co.;  Discount  and  Interest.  The  cash,  bills  receivable  and  pay- 
able accounts  balance  and  need  not  be  entered.  Carry  the  resources 
and  liabilities  to  their  proper  columns.  The  expense  account  will  show 
a  resource  of  I40  (inventory)  and  a  loss  of  $3 1.75.  The  real  estate  ac- 
count will  show  a  resource  of  I3500,  and  a  gain  of  $ .  The  mer- 
chandise account  will  show  a  resource  of  I1563.90,  and  a  gain  of 

$ .     Immediately  under  the  list  of  accounts  write,  in  red  ink, 

first  Present  Worthy  then  Net  Gain.  On  the  line  following  Present 
Worth  in  the  column  headed  * '  Liabilities, ' '  write  in  red  ink  the  dif- 
ference between  the  resources  and  liabilities,  and  on  the  line  follow- 
ing Net  Gain  in  the  column  headed  "  Losses,"  write  in  red  ink,  the 
difference  between  the  losses  and  gains.     Now  add  all  the  columns. 

A  commercial  draft  is  really  a  letter  from  one  person  to  an- 
other requesting  that  a  certain  sum  of  money  be  paid  to  the  person 
who  calls,  or  to  the  bank  or  firm  for  whom  he  is  acting.  Commercial 
usage  recognizes  a  particular  form  in  which  this  letter  is  written  and 
the  address  of  the  person  for  whom  it  is  intended  is  usually  written  at 
the  lower  left-hand  corner  instead  of  on  an  envelope.  Commercial 
drafts  are  sent  through  the  banks  instead  of  directly  by  mail.  For 
instance,  if  A,  of  New  York,  owes  B,  of  Chicago,  |ioo,  B  may  draw  a 
draft  on  A  for  the  amount  and  deposit  it  for  collection  in  his  Chicago 
bank.  This  bank  will  forward  the  draft  to  a  bank  in  New  York  City. 
The  New  York  bank  will  send  a  messenger  with  it  to  A.  If  it  is  a 
sight  draft,  that  is,  if  B  wants  the  money  paid  at  sights  imme- 
diately, A  may  give  the  amount  to  the  messenger  and  take  the  draft 


58  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

as  his  receipt.  If  it  is  a  time  draft,  that  is,  if  B  gives  A  ^ttne^  a 
certain  number  of  days  in  which  to  pay  the  draft,  A  accepts  it ;  this 
he  does  by  writing  the  word  accepted  with  the  date  and  his  signature 
across  the  face  of  the  draft.  He  then  returns  the  draft  to  the  messen- 
ger who  returns  it  through  the  banks  to  B.  An  accrepted  draft  is 
really  a  promissory  note,  though  it  is  called  an  acceptance.  When 
a  man  pays  or  accepts  a  draft  he  is  said  to  honor  it.  In  this  instance 
A  is  not  obliged  either  to  pay  or  to  accept  the  draft.  It  is  not  binding 
upon  him  any  more  than  a  letter  would  be. 

EXERCISE  91.    Commercial  Draft. 

R.  M.  Hudson,  309  Hudson  St.,  Albany,  N.  Y.,  owes  Wyndham 
Weeks,  Trenton,  N.  J.,  $89.27.  Weeks  draws  on  him  to-day  at  sight 
for  the  amount.  He  makes  the  draft  payable  to  the  order  of  himself 
(write,  myself)  y  and  deposits  it  in  the  First  National  Bank  for  collec- 
tion. Write  the  draft.  Write  out  this  draft  in  the  form  of  a  letter  on 
a  separate  sheet  of  paper. 

Supplementary  Exercises. 

79.  The  inside  dimensions  of  a  rectangular  fort  are  210  feet  by  180  feet.  The 
stone  wall  surrounding  this  space  is  five  feet  thick  and  i2j4  feet  high.  How  many 
cubic  feet  of  masonry  are  there  in  the  wall  ? 

80.  The  floor,  walls,  and  ceiling  of  a  room  18  feet  long,  \^'%  feet  wide,  and 
XT.'Yi  feet  high,  are  made  of  inlaid  walnut,  oak  and  rosewood.  Find  the  cost  of 
the  work  at  $2.75  a  square  foot. 


LESSON  XLIV. 

Business  men  find  it  convenient  to  make  collections  by  drafL 
A  debtor  is  more  likely  to  meet  a  draft  than  he  is  to  reply  to  a  letter 
and  enclose  his  check.  There  are  some  houses  that  make  all  their 
payments  by  check,  while  there  are  others  that  prefer  to  have  their 
creditors  at  a  distance  draw  on  them  for  the  amounts  due.  If  a  busi- 
ness man  fails  to  honor  the  draft  drawn  upon  him  it  may  injure  his 
credit  with  the  banks  of  the  city  in  which  he  does  business.  The 
messenger  who  presents  a  sight  draft  is  not  authorized  to  accept  a 
check  in  payment,  but  the  drawee  (person  upon  whom  the  draft  is 
drawn)  may  write  across  the  face,  "Accepted,  June  — ,  190 — ,  payable 
at  First  National  Bank,"  or  whatever  the  date  and  bank  should  be, 
and  under  this  write  his  own  name.  It  will  then  be  an  order  on  his 
bank  to  pay  the  money  for  him  and  he  must  enter  it  in  his  check  book 
just  the  same  as  though  he  had  issued  a  check  for  the  amount. 


BUSINESS  FORMS.  CUSTOMS  AND  ACCOUNTS.  59 


EXERCISE  92.    Commercial  Draft. 

Barton  Burke,  47  Exchange  St.,  Buffalo,  owes  an  account  of  I239.40 
to  Clarence  Clarkson,  406  State  St. ,  Boston.  Clarkson  draws  on  Burke 
at  30  days'  sight  for  the  amount.  He  makes  the  draft  payable  to  the 
order  of  the  Fifth  National  Bank  and  deposits  it.  The  draft  is  for- 
warded to  Burke  who  accepts  it  making  it  payable  at  the  Niagara  Falls 
Bank.  Write  the  draft  and  acceptance.  Date  the  draft  to-day  and 
the  acceptance  five  days  later. 

Questions.— When  will  this  acceptance  mature  ?  If  this  draft  were  drawn 
"  one  month  after  date,"  when  would  it  mature  ?  How  does  it  differ  from  a  sight 
draft  ?  If  Burke  refused  to  accept  the  draft  what  would  be  done  with  it  ?  What 
indorsement  will  appear  on  this  draft  ? 

EXERCISE  93.    Commercial  Draft. 

Duncan  Donaldson,  97  West  Georgia  St.,  Atlanta,  Ga.,  orders  mer- 
chandise costing  |94.2ofrom  Edwin  Eggleston,  Chicago,  and  asks  him 
to  draw  at  sight  for  the  amount.  Write  the  draft.  Make  it  payable 
to  the  order  of  Frank  Fuller,  Springfield,  111.  Frank  Fuller  indor- 
ses this  draft  "  For  collection  for  credit  of  Frank  Fuller,"  and  deposits 
it  in  his  bank  for  collection.     Write  the  indorsement. 

Your  bank  check  is  really  your  sight  draft  on  your  bank. 
Of  course  it  differs  from  an  ordinary  commercial  draft  not  only  in  its 
wording  but  in  its  purpose.  A  check  is  used  for  paying  money  to  a 
creditor,  while  a  draft  is  used  as  a  means  of  collecting  from  a  debtor. 
The  bank  is  obliged  to  pay  your  check  if  it  has  funds  of  yours  suffi- 
cient to  meet  it,  while  the  person  upon  whom  your  draft  is  drawn  may 
or  may  not  honor  it  at  his  pleasure.  Banks  keep  money  on  deposit  in 
one  or  more  other  banks  located  in  some  of  the  commercial  centres. 
Nearly  all  large  banks  keep  money  on  deposit  with  one  or  more  of  the 
New  York  City  banks.  A  bank  draft  is  simply  the  bank's  check 
drawing  on  its  deposit  with  some  other  bank.  Banks  sell  these 
checks  to  their  customers.  Merchants  make  large  use  of  these  drafts, 
or  cashier's  checks  as  they  are  sometimes  called,  in  making  remittances 
from  one  part  of  the  country  to  another.  These  drafts  or  checks  pass 
as  cash  anywhere  within  a  reasonable  distance  of  the  money  centre 
upon  which  they  are  drawn.  Bankers'  drafts  on  New  York  would 
under  ordinary  financial  conditions  be  considered  cash  anywhere  in 
the  United  States.  The  student  must  be  very  careful  not  to  confuse 
commercial  drafts  with  bank  drafts. 

EXERCISE  94.    Bank  Draft. 

The  Delaware  Dairy  Company,  of  Darby,  Pa. ,  has  money  on  deposit 
in  the  Citizens'  National  Bank  of  that  town.  They  owe  Blias  Rogers, 
of  Earlham,  Ind.,  ^93.20.     Instead  of  sending  their  own  check  by 


6o  BUSINESS  FORMS.  CUSTOMS  AND  ACCOUNTS. 

mail  they  consider  it  safer  to  send  a  bank  draft.  They  therefore  write 
their  check  for  the  amount  wording  it, ' '  Pay  to  the  order  oiPhila.  DfV'* 
and  hand  it  to  the  receiving  teller.  A  clerk  writes  up  the  draft  for 
them  and  the  cashier  signs  it,  and  over  his  signature  in  a  slanting 
position  he  writes  in  red  ink  the  amount  $93. 20.  He  does  this  so  that 
the  amount  cannot  possibly  be  changed  without  spoiling  the  signature. 
There  are  other  methods  of  protecting  checks  against  fraudulent  per- 
sons, the  most  common  of  which  is  to  punch  out  the  figures  with  a 
small  machine  invented  for  this  purpose.  The  cashier's  name  is 
Roger  Williams.  The  draft  is  drawn  in  the  Delaware  Dairy  Company's 
favor.  They  indorse  it  making  it  payable  * '  to  the  order  of  Elias 
Rogers,  Earlham,  Ind."  They  write  the  address  so  that  no  other 
Elias  Rogers  can  possibly  collect  the  draft.     Write  this  draft. 

Supplementary  Exercises. 

81.  Find  the  interest  on  $269.84  for  143  days  at  5^  per  cent. 

82.  A  merchant's  resources  are  $4672  and  his  liabilities  are  $5840.  How  mudl 
can  he  pay  on  the  dollar  ? 

83.  A  wholesale  dealer  sold  at  a  profit  of  25  per  cent  to  a  retailer  who  com- 
promised with  his  creditors  at  40  cents  on  the  dollar.  How  much  did  the  whole- 
sale merchant  actually  lose  on  an  account  amounting  to  $840  ? 

84.  When  wheat  is  $1.25  a  bushel,  flour  is  $6  a  barrel.  What  should  be  the 
price  of  flour  when  wheat  is  90  cents  a  bushel,  the  cost  of  making  a  barrel  of 
flour  being  37)^  cents. 


LESSON  XLV. 

EXERCISE  95.    Business  Correspondence. 

The  Delaware  Dairy  Company,  of  Darby,  Pa.,  owe  a  bill  of  I93.20 
to  Elias  Rogers,  of  Earlham,  Ind.,  for  three  new  patent  milk  conden- 
sers which  they  bought  from  him.  The  machines  give  excellent  satis- 
faction. They  desire  to  order  three  more,  but  wish  to  have  Rogers 
send  on  with  the  machines,  and  at  their  expense,  an  experienced  man 
who  can  put  them  up.  Write  the  letter  ordering  the  condensers  and 
enclosing  a  draft  for  the  amount  of  the  bill  already  due. 

Supplementary  Exercises. 

85.  Write  a  note  to  D.  T.  Ames  Company.  202  Broadway,  New  York  City, 
calling  their  attention  to  an  error  in  a  small  order  of  books  which  you  received 
from  them  to-day. 

86.  Prepare  a  deposit  slip  for  a  bank,  the  deposit  to  consist  of  GiAtk%  bank 
notes,  express  orders,  local  and  out-of-town  checks. 


BUSINESS  FORMS,  CUST)MS  AND  ACCOUNTS.  61 


LESSON  XLVl. 

There  are  several  comparatively  safe  methods  of  sending  money 
by  mail.  Checks  and  bank  drafts  have  already  been  described.  The 
post-office  department  provides  money  orders  for  sums  not  exceed- 
ing |ioo  at  an  expense  of  from  3  cents  to  45  cents,  according 
to  the  amount  of  the  order.  These  are  simply  orders  drawn  by  a 
postmaster  at  one  place  on  a  postmaster  in  another,  asking  him  to  pay 
to  a  particular  person  the  sum  named  in  the  order.  The  actual  money 
is  not  transmitted.  The  order,  which  you  enclose  in  your  letter,  con- 
tains the  name  of  the  person  to  whom  the  money  is  to  be  paid,  but 
not  the  name  of  the  sender.  The  postmaster  issuing  the  order  sends 
to  the  postmaster  upon  whom  the  order  is  drawn  an  advice^  numbered 
and  dated  to  correspond  with  the  order  and  containing  the  name  of 
the  person  buying  the  order.  This  advice  is  really  the  stub  of  the 
order  and  the  postmaster  who  is  asked  to  pay  the  money  will  not  pay 
it  until  the  advice  is  received.  He  must  also  satisfy  himself  as  to  the 
identity  of  the  person  to  whom  the  money  is  to  be  paid.  To  obtain  a 
money  order  it  is  necessary  to  fill  out  a  printed  blank  provided  for  the 
purpose  at  the  post-office.  In  filling  out  this  blank  be  careful  to  write 
the  names  asked  for  correctly.  When  paying  a  money  order  the 
postmaster  asks  the  person  receiving  the  money  to  receipt  the  order. 
A  post-office  money  order  may  be  transferred  by  indorsement,  but 
only  once.  In  case  of  loss  of  a  money  order  a  duplicate  will  be  issued 
if  application  is  made  to  either  the  issuing  or  the  paying  postmaster. 
The  duplicate  will  be  issued  by  the  department  at  Washington  and 
forwarded  to  the  person  making  application.  All  the  leading  express 
companies  issue  express  money  orders  payable  at  any  of  the  larger 
offices  of  these  companies.  They  are  negotiable  anywhere  and  bank- 
ing institutions  take  them  as  they  would  bank  drafts.  Any  person 
can  buy  an  express  money  order  by  simply  paying  the  amount 
of  the  order  and  the  fee  (5  cents  for  $5 ;  20  cents  for  I50) 
to  the  express  agent.  It  is  necessary  sometimes  to  send  money 
by  telegraph.  This  is  more  expensive  than  other  methods. 
Only  the  larger  telegraph  offices  are  money  order  offices.  The 
rate  is  one  per  cent  of  the  amount  of  the  order  plus  double  the  tolls 
on  a  single  message  of  fifteen  words  between  the  transfer  places. 
Money  or  other  valuables  may  be  sent  by  registered  letter 
from  any  post-office  in  the  country.  Besides  the  address,  the  letter 
or  parcel  to  be  registered  must  have  the  name  and  address  of  the 
sender  plainly  written  or  printed  upon  it.  The  registration  fee  is  eight 
cents  in   addition  to  the  regular  postage.     The  sender  receives  a 


62  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

receipt  from  the  postmaster.  It  is  absolutely  safe  to  send  money  by 
express.  When  money  is  sent  in  this  way  the  bills  are  placed  in  a 
heavy  envelope  provided  by  the  express  company.  This  envelope  the 
agent  seals  with  wax,  stamping  the  name  of  the  company  upon  the 
wax,  so  that  the  package  cannot  be  tampered  with  by  any  one  through 
whose  hands  it  may  pass.  The  lowest  fee  is  15  cents  for  |20  or  less. 
Larger  fees  are  charged  for  larger  amounts. 

EXERCISE  96.    Carpet  Invoice. 

The  B.  R.  Holman-Kreichler  Company,  Philadelphia,  sold  to  Mrs. 
Silas  Warner,  269  Threadneedle  St.,  the  following  bill  of  goods  :  43!^ 
yds.  All  Wool  Carpet,  I1.35  ;  62  yds.  Wilton,  |2.i2j!^  ;  42^  yds. 
Moquette,  I1.75  ;  i8>^  yds.  Tapestry,  97c.;  3  Persian  Rugs,  6X9, 
I15  each  ;  4  Turkish  Rugs,  4>^  X  7,  19-75  each  ;  47  yds.  Matting,  35c.; 

Making  and  Laying  Carpet yds. ,  at  7c.  a  yard.     Ten  per  cent 

from  entire  bill  for  cash.     Make  out  this  bill  and  receipt  it. 

Supplementary  Exercises. 

87.  Answer  the  advertisement  below,  describing  the  sort  of  room  you  wish, 
stating  the  price  you  can  pay,  and  giving  the  name  of  some  person  as  reference : 

BOARD. — A  few  boarders  can  be  accommo- 
dated with  a  small  family  in  desirable  part 
of  the  city.  References  exchanged.  Address: 
Mrs.  Kmma  R.  Walker,  469  Grand  River  Ave. 

88.  John  Henry  Wood,  Box  735,  Providence,  R.  I.,  answers  the  following  ad- 
vertisement. Mr.  Donaldson  replies,  giving  a  full  description  of  the  farm,  stating 
price,  reasons  for  selling,  and  other  facts  which  the  purchaser  may  wish  to 
know.    Write  the  letter  for  Mr.  Donaldson. 

FOR  SAIvE.— A  farm  of  seventy-five  acres, 
fifty  acres  under  cultivation.  Near  market. 
Price  low.  Easy  terms.  For  full  particulars 
address  David  Donaldson,  Winthrop,  Mass. 


LESSON   XLVIl. 

A  bill  of  lading  is  an  acknowledgment  by  a  transportation  com- 
pany of  the  receipt  of  goods  specified,  and  contracts  for  their  delivery 
at  a  certain  place,  under  conditions  stated  therein,  upon  payment  of  freight 
and  expenses.  Bills  of  lading  are  of  no  value  apart  from  the  particular 
goods  to  which  they  give  a  title.  A  bill  of  lading  goes  with  certain  named 
goods  and  cannot  be  transferred  to  other  goods  of  the  same  kind  and 
price. 

The  freight  conductor's  sheet  containing  a  list  and  description  of  the 
goods  sent  by  a  railroad  is  called  a  way-hUl. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  63 


EXERCISE  97.     Railroad  Bill  of  Lading. 

The  P.  W.  &  B.  R.  R.  Co.  received  from  the  Dunn  Shoe  Co.,  Phila- 
delphia, 2  Cases  Shoes,  marked  [eJ,  gross  weight  850  lbs.,  consigned  to 
Eagle  Shoe  Store,  21  Main  St.,  Williamsport,  Pa.  Write  the  bill  of  lading. 
First  class,  rate  50  cents  per  100  lbs.,  no  charges  advanced.  Pa.  car  20,112. 
Sign  for  the  agent. 

Special  Note.  —  The  conditions  which  usually  appear  on  a  bill  of  lading  are  in  sub- 
stance as  follows  :  i.  The  carrier  shall  not  be  held  liable  for  loss  or  damage  by  causes  be- 
yond his  control.  2.  The  carrier  is  not  bound  to  carry  by  any  particular  train  or  vessel,  or 
in  time  for  any  particular  market,  3.  The  carrier  shall  not  be  liable  for  loss  or  damage  not 
occurring  on  its  own  road,  or  its  portion  of  the  through  route.  4.  All  property  shall  be 
subject  to  necessary  cooperage  and  baling  at  owner's  cost.  5.  Property  not  removed 
by  consignee  within  24  hours  after  arrival  will  be  held  subject  to  lien  for  charges.  6.  The 
carrier  will  not  be  liable  for  any  articles  of  extraordinary  value,  except  by  special  agreement. 
7.  Persons  shipping  dangerous  goods  without  previous  written  disclosure  of  their  nature 
shall  be  liable  for  all  loss  caused  thereby.  8.  Alterations  in  the  bill  of  lading  made  without 
the  special  notation  of  carrier's  agent  on  the  bill,  are  void.  9.  If  the  word  "  order  "  is  written 
hereon,  immediately  before  or  after  the  name  of  the  party  to  whose  order  the  property  is 
consigned,  the  surrender  of  the  bill  of  lading,  properly  indorsed,  shall  be  required  before  the 
delivery  of  the  property  at  destination.  10.  Freight  must  be  paid  according  to  weights 
ascertained  by  carrier.  11.  Carriage  by  water,  if  any,  shall  be  performed  subject  to  the 
conditions  of  the  bill  of  lading. 

Supplementary  Exercises. 

89.  Find  the  cost  of  a  square  mile  of  farm  land  at  $6.35  ati  acre. 

90.  A  map  is  drawn  on  a  scale  of  10  miles  to  an  inch,  and  a  township  is  rep- 
resented on  it  by  a  square  whose  side  is  half  an  inch.  How  many  acres  in  the 
township? 

91.  What  will  it  cost  for  sufficient  lumber  to  build  a  tight  board  fence  5  feet 
high  around  a  19-acre  field,  80  rods  long,  if  lumber  costs  $17.50  per  M  ? 

92.  What  will  it  cost  to  bronze  a  cube,  each  edge  of  which  is  3  feet,  at  2% 
cents  a  square  inch  ? 


LESSON  XLVIII. 

Notes  and  acceptances  are  usually  collected  through  the 
banks.  They  should  be  left  with  the  bank  at  least  fifteen  days  before 
maturity.  About  ten  days  before  maturity  the  bank  will  send  to  the 
maker  a  formal  notice  stating  that  they  hold  a  note  against  him, 
giving  the  amount  and  date  of  maturity,  and  asking  him  to  call  at  the 
bank  and  pay  it.     When  a  note  is  left  at  the  bank  for  collection,  it 

should  be  indorsed  "Collect  for  account  of  A B ."     By  this 

indorsement  the  note  is  not  transferred  to  the  bank.    The  bank  is 
simply  authorized  to  collect  the  amount. 


BUSINESS  FORMS.  CUSTOMS  AND  ACCOUNTS. 


EXERCISE  98.    Promissory  Note. 

On  March  17,  Martin  Chuzzlewit  gave  Nicholas  Nickelby  a  ninety- 
day  note  drawing  interest  at  6  per  cent,  in  payment  of  an  account  of 
1^848.  On  the  day  of  maturity  Chuzzlewit  paid  ^200  to  cover  the  inter- 
est and  part  of  the  principal,  and  gave  a  renewal  at  two  months  with 
interest  at  7  per  cent  for  the  balance.  Write  the  renewal  making  it 
payable  at  the  Exchange  National  Bank.     (No  grace. ) 

Questions.— When  will  the  renewal  mature  ?  What  will  be  due  at  maturity? 
If  there  are  no  indorsers,  is  an  unpaid  note  as  good  after  maturity  as  before? 
Could  this  note  have  been  conveniently  renewed  if  Nickleby  had  transferred  it  to 
A  and  A  to  B  and  B  to  C  ? 

EXERCISE  99.    Bank  Check. 

J.  R.  Wood  keeps  his  money  on  deposit  in  the  Northwestern 
National  Bank  of  Pittsburgh,  Pa.  A  note  for  $49.37  which  he  gave 
Henry  Hardman  is  due  to-day  at  his  (Wood's)  bank.  Wood  gives 
his  check  to  the  receiving  teller  and  takes  up  the  note.  Write  the 
check. 

Directions.— This  check  should  be  drawn  "  Pay  to  the  order  of  Bills  PayabUy 
If  the  note  were  drawn  payable  at  the  bank,  the  bank  would  take  $49.37  from 
Wood's  account  and  pay  it,  but  they  prefer,  usually,  to  have  a  check  handed 
in  and  the  note  taken  up. 

If  the  drawer  of  a  draft  owes  some  one  in  the  same  city  or  town 
with  the  person  upon  whom  he  draws,  he  may  make  the  draft  payable 
to  this  creditor  and  send  it  to  him  by  mail.  The  creditor  will  deposit 
it  for  collection.  For  instance,  if  A  of  Boston  owes  B  of  New  York 
$250  and  C  of  Philadelphia  owes  A  $200,  it  may  be  convenient  for  A 
to  draw  a  draft  on  C  for  $200  in  B's  favor  and  to  enclose  this  with  his 
check  for  $50  in  a  letter  to  B  to  settle  his  indebtedness  in  New  York. 
B  deposits  the  draft  in  his  bank  for  collection.  It  is  forwarded  to  a 
Philadelphia  bank  and  from  there  it  is  sent  by  messenger  to  C  who 
pays  it  if  it  is  a  sight  draft  and  accepts  it  if  it  is  a  time  draft.  This  is 
called  a  three  party  draft. 

EXERCISE  100.    Commercial  Draft. 

Isaac  Inkerman,  of  92  Wall  St.,  New  York  City,  owes  James 
Johnson  &  Co.,  295  Chestnut  St.,  Philadelphia,  $125,  and  King 
Kilpatrick,  of  498  N.  Broad  St.,  Philadelphia,  owes  Inkerman  $500. 
Inkerman  desires  to  pay  Johnson  &  Co.  's  account.  He  draws  at  sight 
on  Kilpatrick  for  I125  and  sends  the  draft  by  mail  to  Johnson  &  Co., 
who  deposit  it  in  the  Ninth  National  Bank  for  collection.  The  draft 
is  presented  by  a  bank  messenger  to  Kilpatrick  who  accepts  it  making 
it  payable  at  the  Second  National  Bank.  Write  the  draft  as  it  will 
appear  when  paid.     Date  to-day  and  acceptance  four  days  later. 

Questions. — What  entries  would  Inkerman  make  in  his  books?  What  entries 
would  Kilpatrick  make?    What  entries  would  Johnson  &  Co.  make?    How  much 


BUS/NESS  FORMS,  CUSTOMS  AND  ACCOUNTS,  45 

time  may  Kilpatrick  have,  after  the  draft  is  presented  at  his  office,  in  which  to 
pay  it  ?  Does  '*  ten-days'  sight "  mean  ten  days  after  the  draft  is  seen  f  Who  will 
have  the  paid  draft  ?  If  Johnson  &  Co.  do  not  acknowledge  the  draft,  will  Inker- 
man  have  any  receipt  ? 

Supplementary  Exercises. 

93.  Invoice :  Gross  amount,  $3698.42,  with  40, 10  and  5  off.    Find  net  amount. 

94.  Invoice :  Gross  amount,  $2684.33,  with  30,  20  and  2  J^  off.    Find  net  amount. 

95.  Invoice  :  Gross  amount,  $3724.80,  with  10,  2%  and  1  off.    Find  net  amount. 

96.  Invoice :  Gross  amount,  $9843.60,  with  30,  2%  and  %  off.    Find  net  amount. 
97*  Invoice :  Gross  amount,  $1002.10,  with  i2}i,  10  and  5  off.    Find  net  amount. 


LESSON  XLIX. 

The  account  books  of  manufacturing  concerns  are  of  a  great 
variety  of  forms.  Each  kind  of  manufacturing  requires  the  use  of 
books  and  of  business  forms  and  methods  specially  adapted  to  its 
work.  The  manufacturer,  to  be  successful,  must  anticipate  the  market, 
for  the  constantly  varying  supply  and  demand  will  affect  prices  and 
profits.  Before  making  up  his  trade  quotations  he  must  consider 
the  cost  of  raw  material,  of  labor  in  producing  the  goods,  of  his  run- 
ning expenses,  and  of  placing  his  goods  in  the  market.  Some  of  these 
are  affected  by  the  volume  of  business  which  it  is  possible  for  him  to 
do.  The  manufacturer  must  calculate  his  profit  upon  the  cost  and  not 
on  the  selling  price. 

EXERCISE  101.   Manufacturer's  Invoice. 

The  Chicago  Print  Works,  394  Beaver  St.,  Chicago,  sold  to 
Laird,  Lonsdale  &  Co.,  Dubuque,  Iowa,  the  following  goods:  Case 
#948,  12  pieces  Percale,  #246— 32"  33  31^  29*  30  32  31'*  33*  31  30 
32^  332 — 9j^c.  Case  f5^949,  8  pieces  Bristol  Chambray,  9^^964 — 32  34 
33^^  34*  35'  34  32  33' — i2|^c.  Case  ^51^950,  12  pieces  Printed  Lawns 
^809—242  25^  24  26*  22  23^*  24*  25^  22'  24  25  24'— 7>^c.  Case  #951, 
18  pieces  Windsor  Prints,  95^1046 — 25'  24*  23  24  23*  22  24  23  25  24  23 
24^  23  22^  25  24  26  22 — 6^4;' c.  Case  ^5^952,  24  pieces  Scotch  Chambray 
(assorted )~292  30  31  32'  30  29  31  33^  32  29*  29  30  31*  32  33  32  31* 
31  29  292  29  30  33^  31 — 14c.  They  charge  ^2.75  for  packing  and  cases. 
Date  to-day.     Folio  342.     Sales  book  24.     Make  out  this  invoice. 

Questions.— Can  you  think  of  any  reason  why  the  packing  cases  should  be 
numbered?  What  is  meant  by  "60  days,  2  per  cent  in  10  days?"  If  you  were 
employed  in  this  house  and  Mr.  Ballingtine  asked  you  to  see  that  these  cases  wexv 
shipped,  tell  fully  what  you  would  do,  or  what  you  would  order  done. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


Supplementary  Exercises. 

98.  A  barrel  of  sugar  containing  280  pounds  cost  $21.  In  weighing  it  out  it 
lost  5  per  cent.    What  per  cent  was  gained  by  selling  it  at  10%.  cents  a  pound  ? 

99.  A  merchant  buys  goods  at  20  per  cent,  10  per  cent  and  %  per  cent  from  the 
list  prices,  and  sells  them  at  25  per  cent  from  the  list  prices.  Find  his  profit  on  a 
sale  of  1 10,080. 


LESSON  L. 
EXERCISE  102.     Bill  of  Lading  (Original). 

The  Sunshine  Soap  Company,  963  Michigan  Ave.,  is  sending  by  the 
Trade  Despatch  and  Wyoming  Pacific  50  cases  of  Sunshine  Soap,  Grade 
AB,  weight  40  lbs.  per  case,  marked  |ME|,  to  Marshall  Eddy  &  Co.,  Cheyenne, 
Wyoming.  Make  out  the  bill  of  lading.  Date  to-day.  No  advanced 
charges.  Wyo.  Pac.  car  No.  10,014.  Rate,  75  cents  per  100  lbs.  First 
class.     Sign  for  the  agent. 

The  parties  to  a  hill  of  Idditig  are  three,  the  shipper,  the  consignee, 
and  the  transportation  company.  The  declaration  of  having  received  the 
goods  in  apparent  good  order  and  the  consequent  obligation  of  delivering 
them  in  like  good  order  and  condition,  is  sensibly  lessened  in  its  impor- 
tance by  the  additional  clause  now  adopted  by  almost  all  transportation 
companies :  contents  and  condition  of  contents  of  packages  unknown.  Should 
the  goods  or  part  of  them  be  shipped  in  an  apparently  damaged  state, 
or  in  a  bad  condition  of  packing,  a  note  to  that  effect  should  be  made 
by  the  transportation  company  on  the  bill  of  lading,  which  ceases  then 
to  be  a  clean  hill  of  lading.  When  a  shipper  does  not  wish  to 
transfer  the  ownership  of  the  property  at  the  time  the  bill  of  lading  is 
made  out,  a  hill  to  order  is  usually  drawn  up,  wherein  the  .consignee's 
name  is  superseded  by  the  words,  shipper's  order,  or  simply,  order, 
or  the  shipper's  name  may  be  given  as  consignee;  it  being  thus  under- 
stood that  the  goods  shall  be  delivered  to  whosoever  presents,  at  point 
of  destination,  the  bill  of  lading  duly  indorsed  by  the  shipper,  or  accom- 
panied by  a  letter  from  the  shipper,  directing  their  delivery  to  the  bearer 
of  the  letter.  Note  clause  9  in  the  "  conditions  "  relating  to  bills  to  order 
(special  note,  page  63).  A  bill  of  lading  may  be  either  deposited  with  a 
creditor  as  a  security  for  money  advanced,  or  transferred  to  a  buyer  by 
means  of  indorsement,  and  the  property  of  goods  will  be  thereby  either 
mortgaged  or  assigned.  Bills  of  lading,  if  to  order,  are  thus  practically 
negotiable.  The  words  "Not  negotiable,"  with  the  notice  accompanying 
them  on  the  face  of  the  bill,  give  the  carrier  the  right  to  deliver  the 
goods  to  the  consignee  without  requiring  the  surrender  of  the  bill  of  lading, 
if  the  bill  is  not  made  to  order. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  67 


EXERCISE  103.     Bill  of  Lading  (Duplicate). 

Make  a  memorandum  copy  of  the  Bill  of  Lading  required  by  the  Sun- 
shine Soap  Company.     (Exercise  102.) 

Questions.  —  What  is  the  advantage  to  the  shipper  of  having  a  bill  of  lading  ? 
Why  are  they  sometimes  issued  in  duplicate  ?  Why  are  there  different  classes  of  freight  ? 
What  is  meant  by  "  Il^  times  first  class "  ?  What  do  the  names  "  Trade  Despatch," 
"  Merchants'  Transportation,"  "  Erie  Despatch,"  etc  ,  signify  ?  How  are  freight  rates 
regulated  ? 

When  a  shipment  is  made,  a  bill  of  lading  is  made  out,  as  we  have 
seen,  signed  by  the  carrier's  agent  and  given  to  the  shipper.  At  the  same 
time  the  shipper  signs  and  gives  to  the  carrier  a  shipping  order  which  sets 
forth  the  same  details  as  the  bill  of  lading.  The  two  forms  are  often 
made  out  (excepting  the  signatures)  at  one  writing  by  the  use  of  carbon 
paper. 

EXERCISE  104.     Shipping  Order. 

Make  out  the  shipping  order  for  the  Sunshine  Soap  Company.  (Exercise 
102.)     Sign  it  for  the  company,  per  Benj.  Ellis,  shipping  clerk. 


Supplementary  Exercises. 

100.  Principal,  $2468.20.     Time,  143  days.     Rate,  7  per  cent.     Find  interest. 

101.  Principal,  $6002.45.     Time,  206  days.     Rate,  6l^  per  cent.     Find  interest. 

102.  Principal,    $2462.75.      Time,    5    months    13    days.       Rate,  8    per    cent.      Find 


LESSON  LI. 
EXERCISE  105.     Business  Correspondence. 

Peter  Carter  Bros.  Company,  of  Lincoln,  Neb.,  owe  the  Berlin  Cotton 
Mills,  53  S,  Jersey  St.,  Trenton,  N.  J.,  an  account  of  ^396.45.  The  latter 
concern  notifies  Carter  Bros.  Company  that  they  will  draw  on  them 
at  sight  in  ten  days,  and  that  they  shall  expect  the  draft  to  be  honored. 
Carter  Bros,  are  sure  they  cannot  meet  the  draft,  notwithstanding  the 
fact  that  the  account  is  long  overdue.  Their  own  collections  have 
been  slow  owing  to  the  business  depression  in  the  West.  Act  for  Paul 
Carter   and   write  a  letter  to  this  creditor,  stating  the  situation  fully  and 


68  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

frankly,  enclosing  a  check  for  as  large  an  amount  as  possible,  and 
asking  for  an  extension  of  time  on  the  balance.  I^et  your  letter  be 
such  as  will  retain  the  confidence  of  your  creditor. 

Supplementary  Exercises. 

103.  English  invoice,  ^212  165.  6d.   Find  the  value  in  American  money.    Ex- 
change, $4.86. 

104.  English  invoice,  ^13  175.  gd.    Find  the  value  in  American  money.    Ex- 
change, $4.87^. 

105.  English  invoice,  ^342  9J,  ^d.   Find  the  value  in  American  money.    Ex- 
change, I4.88. 


LESSON  Lll. 

It  is  often  an  advantage  to  obtain  a  promissory  note  from  a 
debtor.  He  is  more  likely  to  pay  the  amount  at  maturity  than  if  he 
simply  gave  a  verbal  promise.  It  will  injure  his  credit  if  he  allows  his 
paper  to  go  to  protest.  There  is  no  disputing  a  claim  after  a  note  has 
been  given  in  settlement  except  under  very  extraordinary  conditions. 
The  note  may  be  used  by  the  creditor  as  a  means  of  raising  money  for 
his  own  use.  If  his  credit  is  good  he  can  get  it  discounted  at  his  bank. 
To  discount  a  note  at  a  bank  is  to  sell  it  to  the  bank.  The  bank 
deducts  interest  from  the  face  of  the  note  and  pays  the  balance  called 
the  proceeds  to  the  seller.  This  interest,  or  discount  as  it  is  called, 
is  really  the  simple  interest  paid  in  advance  for  the  number  of  days 
the  note  has  to  run.  Notes  received  and  given  by  commercial  houses 
are  not  usually  for  a  longer  period  than  four  monthSy  for  the  reason 
that  most  banks  refuse  to  discount  paper  for  a  longer  period.  Com- 
mercial notes  do  not  usually  draw  interest.  If  interest  should  in  jus- 
tice be  paid  the  amount  is  added  to  the  face  of  the  note  when  making 
it  out.  In  any  case  the  discount  is  reckoned  on  and  deducted  from 
the  amount  due  at  maturity.  The  tim,e  is  always  the  number  of  days 
from  the  date  of  discounting  and  the  date  of  maturity.  In  some  States 
both  the  first  and  last  days  are  counted. 

EXERCISE  106.    Ledger  Practice.    Double  Entry. 

SepU    I. — Borrowed  cash  ^^3500  from  A.  R.  Weed,  with  which  to 

begin  business. 
Sept,    2» — Bought  of  Bancroft  Goodwin  on  account  merchandise, 

12932.45- 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  69 

Sept,    3. — Sold  merchandise  for  cash,  ^593.80. 

Sept.    5. — Gave  A.  R.  Weed  our  note  at  ten  days  for  I763.25. 

Sept.     7. — Sold  Dillon  Bronson  on  account,  merchandise,  I913.27. 

Sept.  8. — Sold  Fred  Snelgrove  merchandise  invoiced  at  1504.2a 
Received  in  payment  cash  1^232.40,  and  his  note  at  ten 
days  for  the  balance. 

Sept.  9. — Had  Fred  Snelgrove 's  note  discounted  at  the  First 
National  Bank.  Discount,  $2. 14.  Balance  placed  to 
our  credit. 

Directions. — Credit  your  Bills  Receivable  account  with  the  full  amount  of  the 
note  and  debit  cash  with  the  actual  cash  placed  to  your  credit,  and  charge  (debit) 
the  I2.14  to  a  '*  Discount  and  Interest "  account. 

Sept.  JO. — Paid  Bancroft  Goodwin,  cash  on  account,  ^^5324. 65. 

Sept,  II. — Lost  by  fire,  merchandise,  ^205.   Received  insurance  in 

cash  ^150. 

Sept.  13. — We  gave  our  note  at  thirty  days  for  |iooo  to  A.  R. 
Weed. 

Sept.  14, — Bought  merchandise  for  cash,  I563.20. 

Sept.  15. — Paid  office  expenses  in  cash,  I37.25. 

Sept.  16, — Gave  our  note  for  I300  at  ten  days  to  Bancroft  Goodwin. 

Sept.  18. — Paid  our  note  due  to-day  in  cash,  $ 

Sept.  SSO. — Cash  sales  of  merchandise  this  day,  I139.65. 

Sept.  21. — Dillon  Bronson  paid  cash  on  account,  $62$, 

Sept.  SOS. — Paid  a  wages  bill  of  ^^22.43  with  goods  from  the  store. 

Sept.  23. — Paid  Bancroft  Goodwin  cash  I257.50,  to  cover  an 
account  of  ^250,  and  interest  J57.50. 

Directions. — Credit  cash  for  the  full  amount.  Debit  Goodwin  for  the  $250  and 
charge  the  $7.50  to  "  Discount  and  Interest." 

Sept.  24. — Sold  Fred  Snelgrove  on  account  merchandise  invoiced 

at  I204.36. 

Sept.  25* — Fred  Snelgrove  returned  goods  valued  at  I13.20  from 
the  lot  sold  him  yesterday.  We  give  him  credit  on 
his  account. 

Note.— If  a  credit  memorandum  were  given  Snelgrove  as  would  be  the  case  In 
large  retail  stores,  no  entry  whatever  in  the  ledger  would  be  made  of  the  goods 
returned. 

Sept.  27. — Bought  of  Bancroft  Goodwin  merchandise  invoiced  at 
I427.80.  Gave  in  payment  cash  $100  and  our  note  at 
thirty  days  for  ^150.     Balance  on  account. 


Sept.  29. — Paid  our  note  due  to-day  in  cash,  $ 

Sept.  30. — Sold  our  entire  stock  of  merchandise  for  cash,  I1923.65. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


LESSON  Llll. 
EXERaSE  lor.    Balance  Sheet. 
Prepare  a  balance  sheet  for  the  September  set  (Exercise  lo6). 

EXERCISE  108.    Commercial  Draft. 

Andrew  Anderson,  49  State  St. ,  Chicago,  owes  Bruce  Bannerman, 
905  Missouri  Bldg.,  St.  lyouis,  an  account  of  $436. 93.  Bannerman 
draws  on  Anderson  June  5,  at  "  thirty  days  after  date,"  for  the  amount, 
and  sends  the  draft  (to  apply  on  account)  to  Charles  Clarke,  42  Main 
St. ,  St.  Paul,  in  whose  favor  the  draft  is  drawn.  Clark  indorses  the 
draft  and  has  it  discounted  in  Brown  Bros. '  private  bank.  Brown 
Bros,  forward  the  draft  for  acceptance.  Anderson  accepts  it  on  June 
10,  making  it  payable  at  the  Farmers'  Bank  of  Chicago.  Write  the 
draft  as  it  will  appear  when  paid. 

Questions. — How  many  accounts  does  this  draft  pay  ?  Bannerman  does  not 
indorse  the  draft.  Will  he  be  responsible  for  its  payment  if  Anderson  fails  to  pay 
it  ?    If  discounted  at  8  per  cent,  how  much  cash  should  Brown  Bros,  pay  for  it  ? 


LESSON  LIV. 

In  a  retail  business,  item,  ledger  accounts  are  necessary,  where 
small  sales  are  made  on  credit,  and  are  more  convenient  than  constant 
reference  to  original  books.  Most  original  credit  and  cash  entries  in 
retail  stores  are  made  on  duplicate  printed  slips  which  are  filled 
out  by  the  salesmen.  From  these  slips  the  charges  are  made  direct  to 
the  ledger  accounts.  A  convenient  form  of  retail  ledger  is  illustrated 
in  the  accompanying  exercise.  The  ledger  leaf  is  divided  unevenly, 
the  larger  space  being  given  to  the  debit  side. 

EXERCISE  109.    Retail  Double  Entry  Ledgfer. 

Directions. — This  form  of  ledger  is  convenient  for  entering  the  items  of  the 
personal  (receivable)  accounts  in  any  ordinary  retail  business.  Several  debit 
items  can  be  written  on  onejine  and  the  total  carried  to  the  money  column.  The 
page  of  the  order  book,  or  the  number  of  the  order  slip,  from  which  the  items 
have  been  taken  should  be  entered  in  the  extra  column.  When  a  cash  payment 
is  made,  it  is  not  necessary  to  write  more  than  the  date,  the  word  "cash,"  the 
page  of  the  cash  book  from  which  transferred,  and  the  amount.  The  balance  due 
at  the  end  of  the  month  should  be  brought  down  under  complete  ruling  or  in 
pencil,  so  that  in  making  out  the  bill  for  the  following  month  the  first  item  may 
simply  be  the  balance  for  the  month  preceding.  The  items  given  are  from  a 
jftocer's  account. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  71 

Sales, — Sold  Byron  Handycrafl,  42  Deer  Park  Ave.,. as  follows: 
^^^'3  (P-  59).  13  lbs.  Sugar,  85c. ;  7  lbs.  Raisins,  I1.05  ;  2  lbs.  Tea,  80c. 
Aug.  5  (p.  74),  5  lbs.  Butter,  I1.25  ;  2  lbs.  Coffee,  68c.;  2  lbs.  Biscuit, 
30.  Aug.  7  (p.  96),  I  bbl.  Flour,  ^7.  Aiig.  5  (p.  107),  6  lbs.  Brown 
Sugar,  30c. ;  Mustard,  %  lb. ,  25c. ;  3  oz.  Nutmeg,  24c. ;  X  lb.  Cinna- 
mon, I2C. ;  5  lbs.  Cleve.  Baking  Powder,  ^^1.90;  2  lbs.  Butter,  50c.; 
2  pkgs.  Wheatlet,  32c.     Aug.  15  (p.  207),  2  bot.  Halford's  Sauce,  74c.; 

1  Broom,  30c.  Aug.  ig  (p.  294),  3  doz.  Eggs,  60c.;  i  Lem.  Extract, 
20C.;  2  lbs.  Cheese,  36c.  Aug.  24  (p.  341),  12  bu.  Potatoes,  I15. 
Aug.  26  (p.  350),  3  cans  Pears,  75c.;  8  cans  Cherries,  $1.60;  3  cans 
Peaches,  90c.;  6  lbs.  Raisins,  90c.  Aug.  29  (p.  362),  3  lbs.  Lard,  54c. 
Sept.  4  (p.  24),  I  bbl.  Flour,  $7."  Sept.  g  (p.  39),  3  lbs.  Butter,  75c.; 
4  lbs.  Cheese,  72c. ;  13  lbs.  Sugar,  85c. ;  2  lbs.  Raisins,  30c.  Sept,  jo 
(p.  42),  2  lbs.  Coffee,  68c.  Sept.  12  (p.  47),  3  doz.  Lemons,  60c.;  4  doz. 
Oranges,  $1.20.  Sept.  75  (p.  60),  3  cans  Tomatoes,  36c.  Sept.  16 
(p.  68),  3  lbs.  Biscuits,  30c.;  2  cans  Cocoa,  80c.  Sept.  18  (p.  72),  6  jars 
Jellies,  72c.;  2  lbs.  Butter,  50c.  Sept.  20  (p.  81),  2  lbs.  Tea,  90c. 
Sept.  22  (p.  103),  13  lbs.  Sugar,  85c.;  2  lbs.  Coffee,  68c.;  6  lbs.  Brown 
Sugar,  30C.;  6  pkgs.  Wheatlet,  96c.;  2  bot.  Halford's  Sauce,  74c. 
Sept.  24  (p.  113),  I  Lem.  Extract,  20c.;  i  box  Soap,  I1.35  ;  12  lbs. 
Rice,  84c.;  3  lbs.  Prunes,  27c.  Sept.  2^  (p.  124),  i  lb.  Soda,  9c.;  5  lbs. 
Starch.  40c.  Sept.  26  (p.  132),  3  bot.  Bluing,  75c.;  2  lbs.  Tea,  90c. 
Sept.  2 J  (p.  141),  2  Hams,  $2.20.  Sept.  2g  (p.  150),  8  cans  Cherries, 
$1.60 ;  3  qts.  Vinegar,  24c. ;  3  cans  Pears,  75c. ;  12  bu.  Potatoes,  $14.50 ; 

2  lbs.  Cheese,  32c.  (Note  that  the  total  prices  and  not  the  prices  per 
pound,  etc.,  are  given.) 

Credits. — Byron  Handycrafl  is  credited  with  the  following  pay- 
ments :  Aug.  Joip.  37),  Cash,  $5.  Aug.  20  (p.  41),  Cash,  $7.50.  Sept. 
J  (p.  68),  Cash,  f  10.  Sept.  is  (p.  75),  Cash,  $5.  The  account  should 
show  the  balance  due  September  i  and  also  October  i. 

Supplementary  Exercises, 

106.  Gross  invoice,  $2469.25.    Discounts,  20,  lo  and  2^  off.    Find  net  amount. 

107.  Gross  invoice,  $3924.69.    Discounts,  30,  2%  and  ^  off.    Find  net  amount. 

108.  Gross  invoice,  $5062.40.    Discounts,  40,  10  and  2  off.    Find  net  amount. 


LESSON    LV. 

It  often  happens  that  a  person  puts  his  name  on  a  promissory  note 
or  accepts  a  draft  without  receiving  any  consideration  for  so  doing, 
but  simply  as  an  accommodation  for  one  of  the  parties  to  it, 
intending  thereby  to  give  the  paper  credit,  and  thus  to  enable  the 
accommodated  party  to  negotiate  it.  If  the  party  giving  the  accom- 
modation is  obliged  to  pay  the  note  or  acceptance,  he  can  recover  the 
amount  from  the  accommodated  party  if  he  has  any  available  resources. 
If  A  desires  B  to  lend  him  his  credit  in  this  way  he  writes  a  note  pay- 
able to  B's  order  and  signs  it  himself.     He  then  gets  B  to  indorse  the 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


note.  The  bank  holding  the  note  will  apply  to  A  the  maker  for  pay- 
ment. B  need  not  bother  in  any  way  about  the  note  except  A  should 
foil  to  meet  it  at  maturity. 

EXERCISE  110.    Manufacturer's  Pay  Roll. 

Make  out  a  pay-roll  for  the  week  ending  August  25, 190 — ,  having 

fiven  the  following  particulars:  Chas.  Price,  8-8^-8-8>^-9-8,  40c., 
2.50  advanced.  Henry  Burns,  9-9-9-8^^-9-9,  42c.  John  Knott,  8- 
8>^-8-7>^,  42c.  (Ill  two  days).  Robert  Kempis,  7-8-7 >^ -6-6-9,  43^., 
$5  advanced.  George  Peterson,  9-8-8^^-9-9-9,  45c.  Albert  Bronson, 
8^^-8-8-7-3-4,  45c.,  $s  advanced.  Edgar  Barr,  8>^-8-7>^,  43c.  (Dis- 
missed). Edwin  Ball,  9-8-8-9-9-9,  50c.  Wm.  Miles,  8>^-8-7-3-3>^- 
5}4i  42c.,  I2.50  advanced.  Patrick  O'Brien,  8-8-81^-9-9-9,  42c. 
Robt.  Gilroy,  9-9-9-8>^-8>^-8>^,  43c.,  $1  advanced.  Jas.  Piper,  8-7- 
7-6}i-6}4~6)4,  48c.,  |io  advanced.  Duncan  McKay,  8-9-8-7-7-7^, 
48c.     Enter  the  bills  and  silver  necessary. , 

EXERCISE  111.    Bank  Check. 

Thomas  R.  Walmsley  keeps  his  money  on  deposit  in  the  Farmers* 
Bank,  Baltimore.  The  last  check  drawn  was  No.  2043.  He  wishes 
to  draw  money  for  his  pay-roll  (Exercise  no)  and  desires  convenient 
•  *  change. ' '    Write  the  check. 

Note. — Where  the  amount  to  be  drawn  is  large,  the  "change"  memorandum 
should  be  handed  to  the  paying  teller  early  in  the  day,  so  that  he  or  his  assistants 
may  have  time  to  make  up  the  bills  and  coins  called  for. 

Supplementary  Exercises. 

109.  Note,  $498.50.  Date,  August  3,  90  days.  Discounted,  August  3,  6  per  cent. 
Find  proceeds. 

110.  Note,  $984.63.  Date,  September  9,  3  months.  Discounted,  September  12, 
6  per  cent.    Find  proceeds. 

111.  Note,  $804.75.  Date,  March  2,  60  days.  Discounted,  March  9,  6  per  cent. 
Find  proceeds. 

112.  Note,  $756.44.  Date,  November  3,  4  months..  Discounted,  December  15, 
6  per  cent.    Find  proceeds. 


LESSON  LVI. 

Goods  bought  in  a  foreign  country  are  invoiced  to  the  buyer  in 
the  weights,  measures  and  currency  of  the  place  where  they  are 
bought.  The  invoices  are  certified  by  the  resident  American  consul 
as  being  the  current  market  prices  at  that  time  and  place.  Manifests 
and  invoices  must  be  presented  at  the  custom  house  where  they  are 


BUSINESS  FORMS.  CUSTOMS  AND  ACCOUNTS.  73 

imported,  and  the  goods,  or  a  sufficient  sample,  are  there  examined 
and  appraised.  Duties  are  paid  in  accordance  with  the  special 
tariff  relating  to  the  article.  A  speci&C  duty  is  a  certain  rate  per 
quantity ;  an  ad  valorem,  duty  is  a  percentage  upon  the  foreign  value 
of  the  goods.  Tare  is  an  allowance  made  for  the  weight  of  boxes, 
bags,  etc.,  containing  the  goods.  A  port  of  entry  is  a  town  or  city 
in  which  a  custom  house  is  located.  No  goods  can  be  legally  imported 
except  at  the  regular  ports  of  entry.  Smuggling  is  secretly  bring- 
ing goods  into  a  country  to  avoid  the  payment  of  duty  and  is  a  crimi- 
nal ofifence.  A  bonded  warehouse  is  a  building  used  for  the  storage 
of  imported  merchandise  until  the  duties  shall  have  been  paid.  Goods 
held  for  duty  are  said  to  be  in  bond, 

EXERCISE  112.    Salesman's  Order  Blank. 

On  July  7,  at  9  a.  m.,  Mrs.  Jno.  Bryant,  20  St.  Mary  St.,  ordered 
the  following  groceries  from  Warden  &  Gerrow,  and  asked  that  they 
be  delivered  at  noon  :  3  lbs.  Butter,  30c. ;  10  lbs.  Gran.  Sugar,  7c. ;  2  lbs. 
Biscuit,  15c.  ;  2  cans  Tomatoes,  13c.  Order  taken  by  Fraser  and 
put  up  by  Brown.     Make  out  the  order  blank. 

EXERCISE  113.    Deposit  Ticket. 

Henry  Albertson  has  an  account  with  the  First  National  Bank  of 
Liverpool.  On  December  3,  190 — ,  he  makes  the  following  deposit : 
Bills,  $150 ;  gold,  $5  ;  silver,  ^4  ;  check  on  Farmers'  Bank,  Liverpool, 
$27.36  ;  draft  on  New  York,  I42.95  ;  check  on  Medford,  Mass.,  I2.40 ; 
P.  O.  money  order,  I7.65.     Make  out  the  deposit  ticket. 

EXERCISE  114.    Receipt. 

Robert  Abercrombie  borrowed  of  Silas  Wiggins  $75,  payable  on 
demand  with  interest  at  8  per  cent.  Date  to-day.  Write  the  receipt. 
How  does  a  receipt  like  this  differ  from  a  note  ? 

EXERCISE  115.  Receipt. 

Write  a  receipt  for  money  paid  you  by  one  person  in  part  payment 
of  an  account  which  is  due  you  by  another.  Date  to-day.  Sign  your 
own  name. 

Supplementary  Exercises. 

113.  A  manufacturer  imported  from  England  35  bales  of  raw  product,  weigh- 
ing 440  pounds  each  ;  tare,  5  per  cent ;  cost,  2%s.  per  pound  ;  specific  duty,  6  cents 
per  pound ;  ad  valorem  duty,  10  per  cent ;  freight,  $124.   What  was  the  entire  cost? 

114.  If  the  duty  on  plate  glass  is  35  cents  per  square  foot,  find  the  duty  on  325 
boxes,  each  containing  22  plates,  and  each  plate  being  26  inches  by  30  inches. 


74  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


LESSON  LVIl. 

The  captain  of  every  ship  must,  within  a  certain  number  of  hours 
after  arrival  at  any  port  and  before  '*  bulk  is  broken,"  deliver  to  the 
customs  office  the  ship's  report  or  manifest.  This  is  a  declaration 
of  her  cargo  and  the  stores  existing  on  board,  the  whole  signed  by  the 
captain,  and  drawn  up  in  a  prescribed  form.  Goods  entered  without 
payment  of  duties  are  stored  in  one  of  the  bonded  warehouses.  The 
advantage  that  trade  derives  from  such  a  system  is  that  newly  landed 
goods  may  be  kept  for  a  considerable  time  unsold  in  a  secure  place, 
and  waiting  for  a  favorable  market,  before  payment  of  the  duties  due 
thereon.  The  captain  of  a  ship  preparing  to  sail  must  have  her 
entered  outwards  at  the  custom  house  before  taking  any  cargo  on 
board.  When  the  cargo  is  completed,  the  captain  is  delivered  a  mani- 
fest of  the  goods  shipped,  and,  upon  approval,  the  vessel  is  cleared 
outwards. 

EXERCISE  116.   Paper  Invoice. 

The  Red-Letter  Publishing  Company,  of  Chicago,  bought  of  The 
Wallace  Paper  Company,  of  the  same  city,  342 >^  rms.  24  X  32  (special). 
Antique  Cover,  65  lbs.,  7>^c.;  billed  at  "30  days,  ^  per  cent  cash." 
Make  out  the  bill.  Date  to-day.  The  Red-Iyctter  Publishing  Com- 
pany paid  one-half  the  bill  in  cash  to-day,  deducting  the  discount. 
At  the  end  of  thirty  days  they  give  a  thirty-day  note  for  the  balance, 
adding  to  the  face  of  the  note  %  per  cent  interest  per  month.  Make 
the  proper  receipt  forms  on  the  bill. 

EXERCISE  11  r.    Bank  Check. 

Dombey  &  Son  keep  their  money  on  deposit  in  the  West  Philadel- 
phia Bank.  The  last  check  drawn  was  No.  4286.  They  owe  Charles 
Dickens  1^2421.94,  and  they  pay  him  by  check.  Dickens  indorses 
the  check  for  deposit  in  the  Strand  National  Bank.  Write  the  check 
and  indorsement 

Questions.— Can  you  think  of  any  advantage  in  having  the  money  amount  in 
figures  at  the  right  of  the  check  instead  of  at  the  left  ?  If  Dickens  loses  this  check 
(i,  before  indorsing ;  2,  after  indorsing),  can  it  be  collected  ? 

Supplementary  Exercises. 

lis.  Divide  $38,217  between  two  men,  giving  one  three-fourths  of  what  the 
other  receives. 

116.  A  debt  of  $429.50  was  due  March  3.-  It  was  not  paid  until  December  13 
following.  Interest  at  the  rate  of  ^%  per  cent  was  charged.  Tl^hat  was  the 
amount  of  the  check  necessary  to  cover  the  debt  ? 

117.  A  note  for  $305.50  is  dated  April  3  at  90  days.  It  is  discounted  at  a  bank 
April  30  at  $%  per  cent.    Find  the  proceeds. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  75 


LESSON  LVIII. 

The  principal  feature  of  a  warehouse  receipt  or  warrant,  as 
used  in  trade,  is  that  it  fairly  represents  at  any  time  the  goods  ware- 
housed, and  may,  therefore,  be  either  transferred  to  a  buyer,  or  given 
as  collateral  (additional)  security  for  money  advanced  to  the  owner. 
A  merchant  possessing  warehoused  goods,  and  wishing  to  have  at  his 
disposal  the  amount  of  money  thereby  represented,  or  part  of  it,  with- 
out losing  the  ownership  of  the  goods,  can  easily  find  a  banker  ready 
to  advance  him  the  required  sum. 

EXERCISE  118.    Hardware  Invoice. 

Baker,  Walker  &  Co.,  465  Centre  St.,  Chicago,  sold  to  Peter  Wein- 
shaft,  42  Dix  St.,  the  following  articles:  10  pr.  Union  Knobs;  30c.; 
I  set  Bronze  Butts,  $2  ;  i  Oil  Stove,  I4.50  ;  i  Steel  Square,  $1.25  ;  i  set 
Auger  Bits,  I4.50 ;  6  quires  Sand  Paper,  #1,  12c.;  3  gross  Screws,  ^''^, 
i6c.;  Hardware  for  Hanpool's  house,  18  Summit  St.,  per  estimate, 
I54.50;  I  bar  Key  Steel,  X^^.  3)4  lbs.,  sKc;  i  Hollow  Plane,  45c.; 
I  Lawn  Mower,  I7.60.  Date  to-day.  Make  out  this  bill  and  receipt 
upon  it  a  cash  payment  of  I50. 

EXERCISE  119.    Promissory  Note. 

David  Copperfield  owes  William  Sikes  1^235.  Copperfield  gives 
Sikes,  to-day,  a  ninety-day  note  payable  at  14  Franklin  Sq. ,  for  the 
amount.  He  dates  the  note  back  to  the  fifteenth  of  last  month  (when 
the  account  was  due)  and  adds  interest  to  the  face  of  the  note  for 
ninety-three  days  at  six  per  cent.  Sikes  transfers  the  note  by  indorse- 
ment to  Robert  Roy,  who  has  it  discounted  at  the  Penn  National  Bank. 
Write  the  note. 

Supplementary  Exercises. 

118.  What  should  be  the  catalogue  price  of  a  piano  which  cost  I300  to  manufac* 
ture,  so  that  the  manufacturer  can  allow  a  discount  of  40  and  10  off  to  the  dealer, 
and  still  make  62  per  cent  ? 

119.  A  note  for  $500,  drawing  interest  at  6  per  cent,  given  June  22  at  90  days,  is 
discounted  at  a  bank  July  10  at  7  per  cent.    Find  the  proceeds. 

120.  A  railway  platform  is  to  be  H2  yards  long  and  19  feet  wide.  It  is  to  be 
built  of  2-inch  oak  plank  costing  $62.50  per  M.  Find  the  cost  of  the  plank  neces- 
sary for  the  platform. 


LESSON  LIX. 

Drafts  are  often  drawn  against  shipments.  A,  of  Chicago, 
wires  B,  of  Baltimore,  to  ship  him  $1000  worth  of  certain  goods  and  to 
draw  at  sight.  B  delivers  the  goods  to  the  transportation  company  in 
Baltimore,  secures  his  to  order  bill  of  lading,  draws  up  a  draft  in  his 


BUSINESS  FORMS,  CUSTOMS  AhlD  ACCOUNTS. 


own  favor,  or  in  favor  of  his  bank,  on  A,  pins  it  to  the  bill  of  lading, 
and  deposits  it  in  his  bank  for  collection.  His  bank  will  forward  to 
their  correspondent  (bank)  in  Chicago  and  the  draft  and  bill  of  lading 
will  be  presented  to  A  by  messenger.  A  pays  the  draft  and  takes  the 
bill  of  lading  to  the  freight  office  in  Chicago  and  secures  his  goods. 
The  chief  advantage  to  the  seller  of  this  method  of  sale  lies  in  the  fact 
that  he  gets  payment  quickly  and  is  secured  against  loss,  while  the 
buyer  can  buy  as  easily  as  to  credit  and  make  payment  as  readily  as 
though  he  bought  the  goods  in  his  own  local  market. 

EXERCISE  120.     Shipping  Order. 

William  Wilkins  &  Co.,  496  State  vSt.,  Chicago,  wholesale  dry  goods  deal- 
ers, ship  by  Trade  Despatch  and  Union  Pacific  to  Denver,  Col.,  one  case_pf 
dry  goods  ordered  by  Thomas  Taylor,  of  Denver.  The  case  is  marked  jjr^j ; 
weight,  475  lbs.  Make  out  the  shipping  order.  Date  to-day.  Consign  to 
*•  Order  Exchange  National  Bank,  Chicago.  Please  notify  Thomas  Taylor." 
Sign  for  E.  Mattocks,  clerk  in  the  Wilkins  store. 

EXERCISE  121.     Bill  of  Lading  (Original). 

Oa  receiving  the  case  of  goods  and  the  shipping  order  (Exercise  120), 
the  Trade  Despatch  agent  gives  the  Wilkins  agent  a  corresponding  bill  of 
lading.  Rate,  81  cents  per  100  lbs.  First  class.  A  sight  draft  on  Thomas 
Taylor  &  Co.,  for  1^321.50,  the  value  of  the  merchandise  shipped,  is  pinned 
to  this  bill  of  lading  and  discounted  at  the  Exchange  National  Bank,  which 
forwards  it  to  a  Denver  bank  for  collection.     Write  the  bill  of  lading. 

Questions.— What  security  has  the  Exchange  National  Bank  for  the  money 
they  give  Wilkins  &  Co.?  If  Taylor  &  Co.  cannot  pay  the  draft  what  will  occur? 
If  the  goods  are  returned  who  will  be  obliged  to  pay  the  double  freight?  How 
does  this  method  of  sale  differ  from  the  C.  O.  D.  Express  method  ? 

EXERCISE  122.    Bill  of  Lading:  (Duplicate). 

Make  a  duplicate  copy  of  the  bill  of  lading  (Exercise  121)  which 
you  have  just  w^ritten.  Who  will  keep  the  duplicate  ?  What  advan- 
tage is  there  in  having  a  duplicate  ? 


LESSON  LX. 

If  you  wish  to  use  your  check  to  pay  a  note  due  at  some  other  bank 
or  in  buying  real  estate  or  stock  or  bonds,  you  may  find  it  necessary 
to  get  the  check  certified.  This  is  done  by  an  officer  of  the  bank 
who  writes  or  stamps  across  the  face  of  the  check  the  words  ' '  certified  ^^ 
or  "good  when    properly  indorsed,"   and    signs    his    name.      The 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS, 


77 


amount  will  immediately  be  deducted  from  your  account,  and  the 
bank  by  guaranteeing  your  check  becomes  responsible  for  its  payment 
Banks  will  usually  certify  any  check  drawn  upon  them  if  the  depositor 
has  the  amount  called  for  to  his  credit,  no  matter  who  presents  the 
check. 

EXERQSE  123.    Daily  Cash  Balance  Book. 

Directions.— The  total  daily  cash  receipts  and  disbursements  in  a  large  house 
may  to  advantage  be  entered  in  what  is  called  a  Daily  Cash  Balance  Book.  That 
shown  on  the  corresponding  exercise  blank  is  a  convenient  form.  Write  the  word 
"  Balance  "  and  the  amount  in  red  ink.  Rule  all  the  way  across  between  the  days. 
Be  careful  to  enter  the  amounts  in  the  proper  columns.  The  number  column  is 
for  the  pages  of  the  other  books  from  which  the  items  have  been  transferred. 


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BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


Items, — Od.  I.  Balance  on  hand  (bank,  $984.23;  safe,  I133.68), 
$1117.91.  Cash  sales  of  merchandise,  $259.60.  Bills  receivable  dis- 
counted, $867.43  I  proceeds,  $843.25  ;  personal  accounts  received  per 
cash  book,  $396.80 ;  personal  accounts  paid  per  check  book,  $369.80; 
sundries  paid  by  check,  $49.80  ;  from  safe  per  petty  cash  book,  $9.60 ; 

deposited,  $342.25.     Od  2.    Balance  on  hand,  $ ;  cash  sales  of 

merchandise,  $489.24;  personal  accounts  received  per  cash  book, 
$463.25;  personal  accounts  paid  per  check  book,  $212.19;  sundries 
paid  by  check,  $72.65  ;  from  safe  per  petty  cash  book,  $15.60;  Mr. 
Bancroft  (partner)  withdrew  for  private  use  cash  from  safe,  $100; 

deposited,  $1063.24.     Od.  3.  Balance  on  hand,  $ ;  cash  sales  of 

merchandise,  $564.27  ;  bills  receivable  discounted,  $726.39  ;  proceeds, 
$704. 16 ;  personal  accounts  received  per  cash  book,  $244.80  ;  bills  pay- 
able charged  to  our  account  in  the  bank,  $846.90  ;  personal  accounts 
paid  per  check  book,  $104.90  ;  rent  paid  per  check  book,  $150  ;  sun- 
dries paid  by  check,  $38.24;  from  safe  per  petty  cash  book,  $12.50 ; 
deposited,  $602.44.     Od.  4.  Balance  on  hand,  $ . 

Directions.— In  actual  business  the  bank  balance  should  be  taken  from  the 
check  book  and  the  safe  balance  should  be  found  by  an  actual  count  of  the  money 
on  hand.  These  two  added  should  equal  the  balance  as  shown  by  the  books. 
Write  the  starred  items  and  the  starred  line  including  the  amounts  in  red  ink. 

Supplementary  Exercises. 

121.  Write  an  order  on  Warden  &  Gerrow  for  |io  worth  of  groceries  to  be  given 
to  "the  bearer,  Thomas  1,.  Wilkinson,"  and  to  be  charged  to  your  account. 

122.  Write  a  due  bill  in  favor  of  Donald  Robinson  for  $20,  payable  in  goods 
from  your  store. 

123.  Write  a  due  bill  in  favor  of  Miss  Harriet  Beecher  for  I25,  payable  on 
demand  in  cash. 


LESSON  LXI. 
EXERaSE  124.    Ledgfer  Practice.    Double  Entry. 

Oct*     I. — Engaged  in  the  Real  Estate  business  investing  cash, 

$5000. 
Oct,     Z, — Rented  an  office  at  16  Superior  St.     Paid  one  month's 

rent  in  cash,  $14. 
Oct,     4, — Rented  for  the  owner  three  houses  on  Winthrop  Lane. 

Received   commissions,  $45   in   cash.     (Note.     Credit 

* '  commission  account. '  * ) 
Oct,     5. — Bought  for  cash  ten  city  lots  on  Wood  Ave.  at  $237.50 

each. 
Oct.     7. — Bought  a  house  and  lot  on  Hanover  St.  for  cash,  $932. 50. 
Oct,     9. — Paid  cash  $97.30  for  painting  of  house  on  Hanover  St 

Note. — In  merchandising,  the  freight  or  drayage  or  any  items  adding  to  the 
cost  of  the  merchandise  are  at  the  time  or  at  the  end  of  the  year  charged  to  the 
"  Merchandise  "  account.  This  item  of  I97.30  increases  the  value  of  the  property 
and  should  be  charged  to  the  "  Real  Elstate  "  account. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


Oct,  lO.— Sold  to  Hiram  Leonard  five  city  lots  on  Wood  Ave.  at 
I348.50  each.  Received  in  payment,  cash  I500,  his  note 
at  tnirty  days  for  $500,  balance  on  account. 

Oct,  19, — Had  Leonard's  note  discounted  at  my  bank  at  7  per 
cent.     Received  proceeds  in  cash,  $ . 

Oct,  13, — Rented  for  the  owner  two  houses  on  Jarvis  St.  Re- 
ceived commissions,  I32  in  cash. 

Oct,  14, — Bought  of  Wesley  Barber  a  house  and  lot  on  Summit 
St.  for  1 1 200.  Gave  in  payment,  cash  |6oo,  my  note  at 
ten  days  for  $450,  balance  on  account. 

Oct.  16, — Sold  for  the  owner  a  suburban  property  for  $9420. 
Received  my  commission  of  2>^  per  cent  in  cash. 

Oct.  18, — H.  Leonard  paid  cash  on  account,  I125. 

Oct,  ig, — Paid  cash  I13.60  for  repairs  on  Summit  St.  house. 

Oct,  21. — Paid  Wesley  Barber  cash  in  full  of  account,  $150. 

Oct,  2^. — Sold  for  cash  $400  a  lot  on  Wood  Ave. 

Oct,  24, — Sold  my  Summit  St.  house  for  cash,  ^1623.40. 

Oct,  25. — Paid  office  expense  in  cash,  I22.90. 

Oct,  27, — Paid  my  note  due  to-day  in  cash,  I450. 

Oct,  28, — Received  from  H.  Leonard  a  draft  on  New  York  in  full 
of  account,  $ . 

Oct,  29. — Sold  for  the  owner  a  manufacturing  property  for  $14,860. 
Received  my  commission  of  2)4  per  cent  in  cash. 

Oct,  30. — Received  cash  $15  for  rent  of  house  on  Hanover  St. 

Note.— If  you  had  a  number  of  houses  rented  it  would  be  better  to  open  a 
•♦  Rent  • '  account.    In  this  instance  credit  the  *'  Real  Estate  "  account. 

Oct,  31, — Rented  for  the  owner  a  house  on  Pilot  Hill.     Received 
my  commission,  I7.50,  in  cash. 
Inventory  :  Real  estate  valued  at  $2600.     Make  out  a  balance  sheet 
similar  to  that  for  the  September  set 


LESSON  LXII. 

A  commission  merchant  sells  goods  for  another,  charging  for 
his  services  a  commission  on  the  amount  received  for  the  goods  sold. 
Commission  merchants  are  sometimes  known  as  commercial  or 
merchandise  brokers.  The  owner  or  shipper  of  the  merchandise 
to  be  sold  calls  it  a  shipment  and  the  merchant  who  receives  the 
merchandise,  that  is,  to  -whom  it  is  consigned y  calls  it  a  consignment. 
The  written  statement  rendered  by  the  commission  merchant  to  the 
consignor  or  owner,  showing  the  sales,  charges,  etc.,  is  called  an 
account  sales. 


So  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


EXERCISE  125.    Commission  Merchant's  Order  Slip. 

Note.— These  order  slips  answer  the  same  purpose  as  do  the  order  tickets  of  a 
salesman  in  a  dry  goods  store  or  grocery.  When  goods  are  sold,  a  full  record  of 
the  sale  is  made  by  the  salesman.  The  slips  are  numbered  for  convenience  in 
checking.  These  slips  are  passed  to  the  bookkeeper  who  enters  the  items  in  the 
proper  books,  entering  the  salesbook  page  upon  the  credit  slips  so  that  the  com- 
plete record  may  be  traced. 

Robert  Stevenson  &  Bro.,  27  State  St.,  Boston,  sold  to  Hugh 
Cleland,  59  Westminster  St. ,  Providence,  R.  I.,  100  bbls.  apples  from 
Lot  268,  Robert  Corley's  consignment,  at  $2.37  per  barrel.  Date  to- 
day. Terms  cash.  Sold  by  Gilray.  Shipped  by  Knott.  Cash  re- 
ceived for  full  amount.     No.  2468.     Make  out  the  order  slip. 

EXERCISE  126.    Commission  Merchant's  Account  Sales. 

On  Dec.  i,  Robert  Stevenson  &  Bro.,  render  an  account  sales  of  a 
consignment  of  130  boxes  Turkeys  and  150  cases  Eggs,  received  Nov. 
15,  per  B.  &  A.  R.  R.,  and  sold  by  order  and  for  account  of  Frederic 
W.  Baugher,  Worcester,  Mass. ,  as  follows  :  Nov.  //,  50  boxes  Turkeys, 
220  lbs.  each,  14c.  ;  30  cases  Eggs,  30  doz.  each,  24c.  Nov.  ig.  40 
boxes  Turkeys,  220  lbs  each,  13'^c.  ;  120  cases  Eggs,  30  doz.  each,  25'c. 
Nov.  23.  40  boxes  Turkeys,  220  lbs.  each,  I4^c.  ;  No.  2468  charges. 
Freight  and  cartage,  I148.50;  insurance,  I9.50;  storage,  I15  ;  com- 
mission,  5  per  cent. ,  $ .     Boxes  and    cases  are  marked    [  b  I 

Make  out  this  account. 

Directions. — Write  the  number  in  red  ink.  Write  Net  proceeds  in  red  ink  on  the 
seventh  line  and  carry  the  difference  between  the  gross  receipts  and  the  charges, 
including  commission,  to  the  right-hand  money  column  (in  red  ink).  Both  col- 
umns should  then  add  to  the  same  amount. 

Supplementary  Exercises. 

124.  A  merchant  buys,  through  an  agent,  480  yards  of  carpet  at  80  cents  per 
yard,  and  pays  the  agent  5^  per  cent  commission.  The  freight  is  $1.92.  At  what 
price  per  yard  must  the  carpet  be  sold  to  realize  a  profit  of  33)^  per  cent  ? 

125.  What  was  the  gross  amount  of  the  sales  when  the  net  proceeds  are 
$2493.16,  brokerage  being  ^  per  cent  ? 

126.  Find  the  interest  on  $2468.43  from  June  3  until  December  19  at  7^^  per 
cent. 


LESSON  LXIII. 

All  accounts  arising  in  business  may  be  arranged  in  three  classes 
as  follows:  !•  Personal^  or  accounts  kept  with  persons.  2.  Real^  or 
accoimts  kept  with  realties,  such  as  cash,  merchandise,  real  estate, 
bills  receivable,  bills  payable,  etc.     3.  Imaginary,  or  accounts  kept 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  8l 

for  convenience  in  estimating  losses  and  gains,  such  as  interest,  ex- 
pense, loss  and  gain,  etc.  Accounts  admit  of  another  classification,  as 
follows  :  1 .  Speculative^  or  accounts  that  represent  the  commodity  in 
which  we  are  dealing  for  profit.  The  merchandise  account  is  specu- 
lative. If  we  were  dealing  in  notes  with  a  view  of  making  a  profit 
our  bills  receivable  account  would  be  considered  speculative  even 
though  the  profit  were  shown  in  the  discount  account.  2.  Non-spec- 
ulative^ or  accounts  that  from  their  nature  have  neither  gain  nor  loss. 
All  personal  accounts  and  the  cash  account  are  non-speculative. 
3.  Auxiliary^  or  accounts  which  supplement  other  accounts.  The 
interest  account  is  auxiliary  to  the  bills  receivable  and  bills  payable. 
The  freight  account  is  auxiliary  to  the  merchandise.  The  expense 
account  is  auxiliary  to  the  entire  business.  Auxiliary  accounts  are 
really  non-speculative  in  themselves. 

EXERCISE  127.    Commission  Invoice. 

Note. — A  commission  invoice  is  an  invoice  received  by  the  commission  mer- 
chant from  the  consignor  or  shipper,  giving  particulars  of  goods  shipped.  It 
differs  from  an  ordinary  invoice  in  this  particular,  that  it  is  not  a  bill  charged 
against  the  person  who  receives  it.  The  merchant  receives  the  goods  but  does 
not  buy  them.  They  remain  the  property  of  the  shipper  and  are  subject  to  his 
order.  Quite  often  no  prices  are  stated,  it  being  understood  that  the  commission 
merchant  will  sell  at  the  highest  price  possible. 

Wilmington,  Del.,  August  29,  190 — ,  Henry  R.  King  &  Co.,  of  Wilmington, 
shipped  per  P.  W.  &  B.  R.  R.  and  consigned  to  J.  C.  I,ansingberger,  192  Market 
St.,  Philadelphia,  to  be  sold  on  their  account  and  risk,  the  following  mer- 
chandise :  2400  baskets  Peaches,  40c. ;  1000  baskets  Plums,  20c. ;  2000  baskets 
Grapes,  15c.;  1200  baskets  Pears,  30c.;  2400  baskets  Cantaloupes,  25c.  Make  out 
his  invoice. 

EXERCISE  128.    Bank  Check. 

Edwin  Eggleston,  of  Lancaster,  Pa. ,  owes  Harold  Henderson,  of 
Ivynn,  Mass.,  $37.40,  and  in  payment  he  sends  by  mail  his  check 
(No.  421)  on  the  Tenth  National  Bank.  Henderson  has  no  bank 
account,  and  he  transfers  the  check  by  indorsement  to  Peter  Pendle- 
ton, of  Lynn,  who  deposits  it  in  the  Hide  and  Leather  Bank  of  that 
city.     Write  the  check  with  indorsements. 

Questions.— If  this  check  is  lost  in  returning  from  I^ynn  to  I^ancaster  whose 
loss  will  it  be  ?  Name  the  clearing  houses  through  which  this  check  is  likely  to 
pass.  What  will  happen  if  when  the  check  reaches  the  I^ancaster  Bank  Eggleston 
has  only  $25  on  deposit  ?  Is  it  a  criminal  offence  to  draw  a  check  for  more  money 
than  you  have  on  deposit  ? 

Supplementary  Exercises. 

127.  Find  the  cost  of  an  asphalt  sidewalk  1%  feet  wide  around  a  square  100  rods 
by  joo  yards,  at  $2.36  per  square  yard. 

6 


83  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

138.  Find  the  cost  of  painting  the  four  walls  and  ceiling  of  a  hall  57^^  feet 
long,  28  feet  wide,  and  24^  feet  high,  at  the  rate  of  145^  cents  per  square  yard. 

129.  Find  the  cost  of  the  2-inch  lumber  necessary  to  lay  a  warehouse  floor  60 
feet  by  40  feet,  at  $22.50  per  M. 


LESSON  LXIV. 

It  is  often  convenient  for  safety  to  leave  money  temporarily  in  a 
bank.  When  this  is  done  the  bank  gives  a  receipt  which  is  called  a 
certificate  of  deposit.  This  certificate  is  payable  on  demand  to 
the  order  of  the  person  in  whose  favor  it  is  drawn  and  may  be  used  as 
cash  in  the  payment  of  any  debt,  whether  local  or  at  a  distance. 

EXERCISE  129.    Balance  Sheet. 

Make  out  a  balance  sheet  from  the  following  ledger  footings : 
{Student):  Dr.,  $296. 85  ;  Cr.,  I5964.24.  Cash:  Dr.,  ^9764.26;  Cr., 
$7928.45.  Mdse.:  Dr.,  $7943.68;  Cr.,  I8072.43.  Harold  Ball:  Dr., 
I4269.24;  Cr.,  I946.20.  Frank  Eaton:  Dr.,  $2062. 36;  Cr.,  I1004.27. 
Ewart  Bryant:  Dr.,  I1047.28;  Cr.,  I467.35.  Kenneth  Mandell-. 
Dr.,1468.25;  Cr.;  I724.25.  Albert  Faro:  Dr.,  $206.22;  Cr.,  $647.39. 
Expense  ;  Dr.,  $136.95.  Bills  Receivable  :  Dr.,  $847.65  ;  Cr.,  $621.39. 
Bills  Payable  :  Dr. ,  $204. 79  ;  Cr. ,  $895. 83.  Loss  and  Gain  :  Dr. ,  $24. 27. 
Inventory  of  Merchandise  on  hand  :  $948.26.  Write  the  net  gain  and 
present  worth  in  red  ink. 

EXERCISE  130.    Commercial  Draft. 

Peter  Hamilton  &  Co.,  604  Main  St.,  Buffalo,  owe  $342.50  to  the 
Eureka  Bridge  Company  (Adam  Bede,  Treas.),  of  Cincinnati.  On 
January  i,  the  Eureka  Bridge  Company  send  Hamilton  &  Co.  a  state- 
ment with  the  notice  that  "if  the  account  is  not  paid  on  or  before 
the  loth  inst.  they  will  draw  at  sight."  On  the  loth  they  draw  at 
sight,  making  the  draft  in  favor  of  the  Farmers'  Bank,  of  Cincinnati. 
Hamilton  &  Co.  honor  the  draft,  making  it  payable  at  their  bank, 
the  Tenth  National.  Make  a  copy  of  the  draft  as  it  should  appear 
when  paid. 

Supplementary  Exercises. 

130.  Write  a  letter  to  a  delinquent  customer,  enclosing  a  statement  of  his 
account  ($76.84)  and  calling  his  attention  to  the  same. 

131.  The  person  to  whom  you  have  written  has  given  your  letter  no  attention. 
Write  him  a  second  letter  more  pointed  than  the  first. 

132.  Put  yourself  in  the  debtor's  place,  and  w^rite  a  suitable  reply  to  the  fore- 
going, enclosing  your  check  for  part  of  the  amount  due,  and  asking  time  on  the 
balance. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


LESSON  LXV. 

In  large  cities  checks  representing  millions  of  dollars  are  deposited 
in  the  banks  every  day.  The  separate  collection  of  these  would  be 
almost  impossible,  were  it  not  for  the  clearing  bouse  system.  The 
clearing  house  is  an  association"  of  the  banks  of  a  large  city  where, 
upon  each  business  day,  the  several  associated  banks  effect  their 
exchanges  of  checks  and  drafts,  and  settle  the  balances  resulting  there- 
from. Let  us  suppose,  for  illustration,  that  to-day  Bank  A,  of  Chicago, 
receives  in  its  deposits  from  customers  checks  on  Banks  B,  C,  D  and 
B,  of  Chicago.  Banks  B,  C,  D  and  B  are  likely  to  have  received  checks 
on  Bank*  A.  Bach  bank  sends  its  messengers  to  the  clearing  house 
with  these  checks.  A's  checks  against  the  other  banks,  we  shall  sup- 
pose, amount  to  $3642,  and  their  checks  against  A  amount  to  f  2421. 
This  will  leave  a  clearing-house  balance  in  Bank  A's  favor  of  $1221, 
which  amount  is  paid  to  A  by  the  clearing  house.  The  banks  having 
more  checks  against  them  than  in  their  favor  pay  the  balance  to  the 
clearing  house.  The  clearing  house  is  the  exchange  centre  for  the 
city  banks,  and  each  city  bank  is  a  centre  for  dozens  of  smaller 
country  banks.  Suppose  that  Brown,  of  Media,  Pa. ,  receives  a  check 
on  the  First  National  Bank  of  Salem,  Mass.  Brown  deposits  it  in  the 
First  National  Bank  of  Media.  This  bank  sends  it  to  its  correspondent 
(bank)  in  Philadelphia.  The  Philadelphia  bank  sends  it  to  its  cor- 
respondent (bank)  in  Boston.  The  Boston  bank  takes  it  to  the  Boston 
Clearing  House  and  charges  it  against  whatever  Boston  bank  is  cor- 
respondent for  the  First  National  of  Salem.  In  this  way  the  check 
reaches  Salem  and  is  charged  to  the  customer  who  drew  it.  Bach 
bank  through  which  the  check  passes  stamps  its  name  and  other  par- 
ticulars on  the  back.  Bvery  bank  has  a  connection  either  directly  or 
through  other  banks  with  one  or  more  clearing  houses. 

EXERaSE  131.    Printer's  Order  Book. 

Directions,— This  exercise  is  given  simply  to  show  the  need  and  value  of  txxjks 
of  accounts  specially  adapted  to  a  particular  business.  Here  we  have  a  printer's 
order  book  which  is  as  diflferent  from  a  grocer's  order  book  (Kxercise  i)  as  it  is 
possible  for  two  books  of  records  to  be.  Each  business  must  necessarily  have  its 
own  peculiar  system  of  records.  It  is  impossible  to  illustrate  all.  Write  ' '  Printer's 
Order  Boo^  Job  Work,  Month  of  October,  190—."  By  job  work  is  meant  small 
work  to  distinguish  it  from  large  orders  from  book  and  periodical  publishers. 
The  quantity  includes  the  number  of  reams  and  the  weight  per  ream.  Write  the 
one  under  the  other.  All  job  work  is  charged  by  the  hour.  By  corrections  is 
meant  the  time  it  took  the  compositor  to  make  the  type  changes  which  the  person 
ordering  the  printing  made  in  the  proof  sent  him.    Charge  50  cents  an  hour. 


84  BUSINESS  FORMS.  CUSTOMS  AND  ACCOUNTS. 

Straight  composition,  such  as  the  page  of  a  book  or  a  column  of  news,  is  charged, 
not  by  the  hour,  but  by  the  thousand  ems  and  compositors  are  paid  in  this  way. 
Press-work  is  charged  by  the  thousand  impressions.  In  this  exercise  charge  $i 
for  "  making  ready  "  the  press,  $2  per  M.  for  press  A  and  press  C,  and  $1,50  per  M. 
for  press  B.  Write  the  letter  representing  the  press  below  the  number  of  thou- 
sands.   Add  22>}i  per  cent  for  profit. 

Orders.— Oct.  9.  Edgar  Bastedo,  24  Tremont  St.  Stock— 3^5^ 
rms. ,  30  lbs. ,  6c.  Composition  by  C.  R. ,  4^  hrs. ;  }4  hr.  corrections. 
Press-work — Ten  thousand  on  press  B.  (Write  10  M.  with  B  under  it.) 
Henry  Oaten,  45  Devonshire  St.  Stock — }i  rm.,  60  lbs.,  12c.  Com- 
position by  R.  M.,  2  hrs.  Press- work — 2}4  M.  A.  R.  M.  Blodgett,  30 
Bromfield  St.  Stock — t,i4  lbs.,  8c.  Composition  by  J.  R.,  2^  hrs., 
}i  hr.  Press-work— >^  M.  A.  James  Hill,  49  Comhill  St.  Stock— 2 
rms.,  20  lbs.,  15c.  Composition  by  C.  D.,3  hrs.,  i  hr.  Press- work — 
8  M.  A.  Chas.  Peterson,  Hay  market  Sq.  Stock — 12  lbs.,  loc. 
Composition  by  J.  B.,  6^  hrs.,  2  hrs.  Press- work — i  M.  B.  Andrew 
Jackson,  Copley  Sq.  Stock — 2  rms.  40  lbs. ,  8c.  Composition  by  K. 
B.,  3  hrs.,  >|  hr.  Press- work — 10  M.  C.  Harry  White,  22  Federal  St. 
Stock — 20  lbs. ,  I2C.  Composition  by  J.  E. ,  6  hrs. ,  2  hrs.  Press- work — 
I  M.  B.  Enter  these  orders,  making  the  proper  charges.  (The 
amounts  in  the  first  order  are  as  follows  :  Stock,  I6.30 ;  Composition, 
$2.50;  Picsa-work,  |i6.oo  ;  Charged,  $39.73.) 


EXERaSE  132,    Promissory  Note. 

Robert  Elsmere,  of  Boston,  owes  Felix  Holt,  of  Baltimore,  an 
account  of  ^322.80.  He  sends  him  a  three  months'  note  dated  July  3, 
payable  at  the  Eighth  National  Bank,  and  with  David  Grieve  as 
mdorser.  Holt  transfers  the  note  by  indorsement  to  Silas  Wegg,  of 
Washington.  Wegg  has  it  discounted  August  I,  at  the  Capitol 
National  Bank  at  6  per  cent    Write  the  note. 

Questions.— When  will  this  note  mature?  How  much  should  Wegg  receive 
as  net  proceeds?  If  Elsmere  fails  to  pay  the  note,  who  will  have  it  protested? 
Tell  how  the  note  will  reach  E)lsmere.  If  Wegg  is  unable  to  pay  the  protested 
note  and  the  Capitol  National  Bank  demands  and  receives  payment  from  David 
Grieve,  from  whom  can  Grieve  demand  payment  ?  Who  will  have  to  pay  the 
protest  fee  ? 

Supplementary  Exercises. 

133.  Find  the  proceeds  of  a  note  for  $436.90,  dated  March  12,  at  3  months,  and 
discounted  April  3  at  7>^  per  cent. 

134.  A  wool  merchant  buys  24,000  pounds  of  wool  at  18^  cents.  He  has  it 
scoured,  but  in  the  process  it  shrinks  20  per  cent  in  weight.  It  is  then  dyed 
and  the  coloring  increases  the  weight  7%  per  cent.  The  wool  is  then  sold  for  25 
cents  a  pound.  Find  the  gain  or  loss  if  the  expense  for  scouring  is  }4  cent  a 
pound  and  for  dyeing  ij^  cents  a  pound  on  the  amount  delivered  in  each 
instance. 


BUSINESS  FORMS.  CUSTOMS  AND  ACCOUNTS. 


LESSON  LXVI. 

A  draft  on  a  foreign  bank  is  commonly  called  a  hill  of  exchange. 
They  are  usually  drawn  in  duplicate,  one  of  which  is  forwarded  and 
the  other  retained.  They  are  so  worded  that  when  the  original  is 
paid  the  duplicate  becomes  void.  They  are  drawn  in  the  currency  of 
the  country  where  they  are  payable.  These  drafts  are  used  to  pay 
accounts  in  foreign  countries  just  as  drafts  on  New  York  are  used  to 
pay  indebtedness  at  home. 

EXERCISE  133.    Invoice. 

Wm.  Meistershaft  &  Co. ,  404  State  St. ,  Portland,  Oregon,  bought  of 
M.  R.  Warren,  San  Francisco,  the  following  :  2  Emerson  Upright 
Pianos,  Style  D,  Rosewood  Finish,  at  ^350 ;  2  Kimball's  Pianos, 
Style  2,  Mahogany  Veneer,  at  I420 ;  4  Sohmer's  Pianos,  Cabinet 
Grand,  Style  7,  Oak  Finish,  at  I275  ;  2  Kimball's  Reed  Organs, 
Styles  160  and  190,  at  ^125;  6  Ideal  Kodon's,  at  1^25.  Discounts  30 
and  5  oflf.  Acknowledge  advance  payment  of  ^500  (draft  on  N.  Y.) 
on  account.     Shipped  by  Oregon  Line.     Date  to-day. 

Supplementary  Exercises. 

135.  Gross  invoice,  $2464.20.  Discounts,  25,  10  and  2  off.    Find  net  amount. 

136.  Gross  invoice,  $3026.35.  Discounts,  30,  20  and  %  off.    Find  net  amount. 

137.  Gross  invoice,  $4212.40.  Discounts,  40,  5  and  i  off.    Find  net  amount. 

138.  Gross  invoice,  $9024.65.  Discounts,  50,  10  and  J4  off.    Find  net  amount. 

139.  Gross  invoice,  $4268.43.  Discounts,  30,  12^  and  3  off.    Find  net  amount. 


LESSON  LXVII. 

A  wa.rranty  is  an  undertaking  by  the  seller,  either  expressed  or 
implied,  that  a  certain  fact  in  regard  to  the  thing  to  be  sold,  is,  or 
shall  be,  as  it  is  promised.  If  the  warranty  is  not  fulfilled  the  buyer 
may  return  the  goods  or  claim  damages.  In  a  sale  by  sample  the 
seller  in  reality  warrants  that  the  goods  will  equal  the  sample,  and 
the  buyer  has  a  right  to  return  the  goods,  if  they  are  not  the  same  as 
the  sample. 

EXERCISE  134.     Steamship  Bill  of  Lading. 

The  goods  ordered  by  Wm.  Meistershaft  &  Co.  (Exercise  133)  are 
shipped  by  the  Oregon  Steamship  Line,  marked  with  full  name  and  address 
of  consignee.     Make  out  the  bill  of  lading.     Gross  weight  7250  lbs.    There 


86  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

are   no   advanced  charges.     Rate,  twice  first  class,  $1.65   per    100   pounds, 
hjign  your  own  name  as  receiving  clerk  for  the  Oregon  Steamship  Line. 

Questions. — What  is  meant  when  we  say  that  a  vessel  has  cleared?  What  is  meant 
by  consignee?  Why  is  the  clause  **  contents  and  condition  of  contents  unknown  "  inserted  ? 
How  is  marine  insurance  secured  ?  In  what  particulars  does  this  bill  of  lading  differ  from 
one  issued  by  a  railway  transportation  company? 

EXERCISE  135.     Shipping  Order. 

Make  out  the  shipping  order  corresponding  to  the  bill  of  lading  in 
Exercise  134.     Sign  the  order  for  M.  R.  Warren. 

Supplementary  Exercises. 

140.  Note,  $846.20.  Date,  March  9,  3  months.  Discounted,  April  3,  6  per  cent. 
Find  proceeds. 

141.  Note,  $700.00.  Date,  March  2,  90  days.  Discounted,  April  2,  7  per  cent. 
Find  proceeds. 

142.  Note,  $946.20.  Date,  August  4,  4  months.  Discounted,  August  7,  73^  per 
cent.    Find  proceeds. 

143.  Note,  $324.37.     Date,   September  9,  60  days.     Discounted,   September  9, 
^     5  per  cent.     Find  proceeds. 

144.  Note,  $800.00.  Date,  October  12,  2  months.  Discounted,  October  27,  6  per 
cent.     Find  proceeds. 


LESSON  LXVIII. 

Movable  property  is  called  chattels  in  legal  documents. 

IvCgal  permission  to  do  a  certain  act  is  termed  a  license. 

To  attach  property  is  to  seize  it  by  virtue  of  legal  process. 

Accrued  interest  is  interest  earned  up  to  the  present  time. 

To  audit  an  account  is  to  examine  it  and  testify  to  its  correctness. 

An  account  which  a  debtor  has  against  a  creditor  is  termed  an 
off- set. 

A  man  appointed  to  execute  or  carry  out  the  will  of  another  is 
called  an  executor. 

A  sum  of  money  set  aside  for  the  payment  of  a  debt  when  it 
becomes  due  is  called  a  sinking  fund. 

p,  O,  B.  These  letters  stand  for  free  on  board,  and  indicate  that 
the  goods  are  sold  at  the  prices  stated,  free  of  all  shipping  expenses 
or  in  other  words,  that  the  freight  must  be  paid  by  the  purchaser. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  87 

The  difference  between  the  exports  and  imports  of  a  country  with 
respect  to  another  is  called  the  balance  of  trade.  If  we  import 
more  than  we  export  the  balance  of  trade  is  said  to  be  against  us. 

A  power  of  attorney  is  a  written  statement  given  by  one  person 
authorizing  another  to  transact  business  for  him.  The  one  is  said  to 
be  the  other's  attorney,  and  in  signing  important  papers  he  must  write 
*'  attorney ' '  after  his  signature. 

A  mercantile  agency  is  a  concern  which  procures  information 
relating  to  the  financial  standing  and  credit  of  merchants  for  the  use 
of  others,  to  whom  said  merchants  may  apply  for  credit.  Bradstreets 
and  Dun  &  Co. ,  are  two  large  concerns  of  this  kind. 

EXERCISE  136  and  \ZX.    Grocer's  Itemized  Bills. 

Directions.— See  the  note  in  connection  with  Kxercises  3  and  4.  The  bills 
given  here  are  intended  to  ilhlstrate  the  statements  which  a  grocer  will  send  out 
at  the  end  of  the  month  who  has  not  rendered  itemized  bills  with  the  several 
sales.    The  balance  due  from  the  last  month,  if  any,  should  be  entered  first. 

^irst  MIL— Mrs.  H.  W.  Canfield,  428  N.  sth  St.  Balance  due 
from  August,  I14.26.  Sept.  3.  2  lbs.  Butter,  27c.;  2  lbs.  Orange  Pf^el, 
1 8c.;  2  cans  Potted  Ham,  17c.  Sept.  7.  5  lbs.  Biscuits,  15c.;  12  lbs. 
Sugar,  5>^c.;  3  doz.  Eggs,  22c.;  i  gal.  Molasses,  75c.;  2  lbs.  E.  B.  Tea, 
60C.  Sept.  12.  I  pkg.  Baking  Powder,  65c. ;  i  lb.  Coffee,  40c. ;  2  cans 
Tomatoes,  i6c. ;  2  cans  Cherries,  20c.;  i  bag  Salt,  i8c. ;  2  sacks  Flour, 
$1.40;  3  qts.  Mixed  Pickles,  26c.  Sept.  20.  i  Ham,  15  lbs.,  13c.;  2 
bx.  Corn  Starch,  13c. ;  2  lbs.  Butter,  27c. ;  3  lbs.  Lard,  iSc. ;  3  cans 
French  Peas,  27c.  Sept.  24.  i  doz.  demons,  30c. ;  2  lbs.  Almond  Nuts, 
28c. ;  2  lbs.  Butter,  30c. 

Second  bill, — ^These  bills  will  be  made  out  from  the  ledger 
accounts.  Turn  to  Byron  Handycraft's  account.  You  have  already 
made  a  copy  of  it  in  Exercise  109.  Note  the  advantage  of  keeping  the 
account  in  this  form.  Make  out  the  itemized  bill  which  should  be 
mailed  to  Handycraft  on  October  i.  Remember  that  the  house  is  sup- 
posed to  have  sent  him  an  itemized  bill  on  September  i,  and  it  should 
be  the  policy  of  business  houses  not  to  duplicate  the  items  of  any  bill 
in  a  subsequent  statement  except  the  customer  asks  for  such  duplicate. 

Questions. — Explain  what  is  meant  by  importing.  Why  are  the  three  names 
printed  on  the  bill-head  ?  Why  do  partnership  or  firm  names  very  often  remain 
the  same  even  though  some  members  die  and  other  new  members  are  added? 

Supplementary  Exercises. 

145.  At  what  per  cent  above  the  manufacturer's  prices  must  a  wholesale  mer- 
chant mark  goods,  so  that  he  can  allow  a  retailer  a  discount  of  30  per  cent  and  2% 
per  cent  off  and  still  make  a  profit  of  40  per  cent? 

146.  A  note  of  $1200,  drawing  interest  at  8  per  cent,  dated  September  4,  at  3 
months,  is  discounted  October  15  at  6  per  cent.    Find  the  proceeds. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


LESSON  LXIX. 

The  business  of  a  bank  is  to  receive  money  on  deposit,  and  to 
lend  it  to  customers.  The  money  which  it  lends  is  largely  its  capital 
and  its  deposits.  Its  profits  come  from  the  interest  it  charges  on 
loans.  The  national  banks  are  organized  under  national  laws, 
while  state  banks,  savings  banks,  etc. ,  are  organized  under  the  laws  of 
the  State  in  which  they  are  located.  Any  person  who  has  money  and 
credit  can  start  a  private  bank.  Some  of  the  largest  banking  institu- 
tions of  the  world  are  owned  by  private  individuals  and  are  not  subject 
to  law  any  more  than  is  any  other  kind  of  business  house.  Trust 
companies  are  in  some  respects  similar  to  banks.  They  receive 
deposits  and  make  loans,  but  they  do  not  usually  undertake  the  gen- 
eral collection  of  commercial  paper.  They  act  as  trustees  for  corpora- 
tions, as  agents  for  the  sale  of  stocks,  as  executors,  administrators  and 
guardians  of  money  for  courts.  They  make  investments,  collect 
interest  and  rents,  and  perform  many  other  financial  services.  They 
rent  fire-proof  vaults  and  boxes  to  customers  who  desire  a  safe  place  in 
which  to  keep  their  valuable  papers. 

EXERCISE  138.    Painter's  Bill  for  Labor. 

Dr.  J.  B.  Watson,  Elmira,  N.  Y.,  asked  Mr.  Charles  Emerson,  a 
local  painter,  to  give  him  an  estimate  on  painting  his  stable,  shed  and 
yard  fence.  Mr.  Emerson  gives  an  estimate  of  I53.50  and  secures  the 
order.  He  does,  upon  request,  two  or  three  other  small  jobs  about  the 
place  which  were  not  included  in  the  estimate  and  which  required  three 
hours  of  his  time.  He  simply  charges  for  the  time  at  the  rate  of  35c. 
an  hour.  Make  out  the  bill.  Date  it  the  first  of  the  current  month.* 
Receipt  it  for  Dr.  Watson.     Date  to-day. 

EXERCISE  139.    Bank  Check. 

Dr.  J.  B.  Watson  keeps  his  money  on  deposit  in  the  Tenth  National 
Bank,  Elmira.  The  last  check  drawn  was  No.  2046.  Write  a  check 
in  favor  of  Charles  Emerson  in  full  of  account  for  painting.  Date 
to-day.  Emerson  indorses  the  check  and  gets  it  cashed.  Write  the 
check. 

Questions. — If  the  bill  were  not  receipted,  how  would  this  check  serve  Dr. 
Watson  as  a  receipt  ?  What  is  meant  by  "  Pay  to  the  order  of  Chas.  Emerson?" 
Suppose  Dr.  Watson  spelled  E)nierson's  name  wrong  on  the  check,  how  should  it 
be  indorsed  ? 

Supplementary  Exercises. 

147.  Find  the  cost  of  painting  both  sides  of  a  12-foot  tight  board  fence  around 
a  square  ten-acre  athletic  ground  at  the  rate  of  7J^  cents  a  square  yard. 

148.  Find  the  cost  of  painting  the  outside  of  40  boxes,  each  box  being  4  feet  by 
5  feet  by  2%  feet  outside  measurement,  at  ij^  cents  a  square  foot. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


LESSON  LXX. 
EXERCISES :  Financial  Statements. 

Exercise  140.— Net  investment,  I2369.40.  Gain  on  merchandise, 
I864.20.  Entire  expenses,  I142.76.  I^oss  on  interest,  I7.40.  Find  the 
present  worth. 

Exercise  141. — Commenced  business  with  resources,  I7269.20  and 
liabilities,  I2043.46.  Loss  on  merchandise,  I247.36.  Other  losses, 
I212.36.  Gain  on  discounts,  I47.20.  Withdrew  for  private  use,  ^550. 
Find  the  present  worth. 

Exercise  1 42. — Commenced  business  with  merchandise,  I2423. 30  and 
no  other  resources.  Owe  Brown  Bros.  ^264.90  at  beginning.  At  close 
of  year  have  cash,  I1046.20  ;  merchandise,  $3924.36  ;  and  Brown  Bros, 
owe  us  I125.63.  No  liabilities.  Total  expenses  of  the  year,  $425. 
Find  the  net  gain. 

Exercise  143. — Net  investment,  $6439.27.  Resources  at  end  of 
year  :  cash,  $4043.20 ;  merchandise,  $2056.20;  bills  receivable,  $369.40; 
and  personal  accounts,  $1269.45.  lyiability  at  end  of  year:  bills  pay- 
able, $763.40.  Withdrew  during  the  year  for  private  use  cash,  $439.25. 
Find  the  net  gain. 

Exercise  144. — Commenced  business  with  merchandise,  $4739.20. 
Merchandise  burned  during  the  year  valued  at  $1960  upon  which 
insurance  $1500  was  received.  Merchandise  on  hand  at  the  end  of  the 
year,  $3964.20.  Other  resources  at  closing,  $2468  and  liabilities, 
$1243.27.     Find  the  net  gain  or  loss. 

Exercise  145.— Net  investment,  $4684.25.  Loss  on  merchandise, 
$476.20;  other  losses,  $194.20.  Total  gains,  $47.90.  Withdrew  for 
private  use  cash,  $243.20  and  merchandise,  $68.25.  Find  the  present 
worth. 

Exercise  146. — The  total  resources  at  commencing  are  $4762.40,  and 
the  total  liabilities  are  $2046.21.  The  net  loss  during  the  year  is 
$724.95.  The  resources  at  closing  are  $2469.40.  Find  the  liabilities  at 
closing. 

Exercise  14^. — Net  investment,  $6942.80.     Withdrew  for  private  use 

during  the  year,  $1269.30.     Net  gain  during  the  year,  $3642.45.     The 
liabilities  at  closing  are  $4627.20.     Find  the  resources  at  closing. 

Exercise  148. — Gross  gains  during  the  year,  $2768.40,  and  gross 
losses,  $482.20.  Additional  investment  during  the  year,  $2700. 
Present  worth  at  closing,  $6942.36.  Find  the  original  net  invest- 
ment. 

Exercise  149. — Net  loss  during  the  year,  $472.36.  Withdrew  for 
private  use  during  the  year,  $693,  and  made  an  additional  investment 
of  $1000.  Resources  at  closing,  $6425.30,  and  liabilities,  $1426.95. 
Find  the  original  net  investment. 


90  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


LESSON  LXXI. 

The  expenses  of  the  federal,  state,  county  and  town  governments 
are  met  by  assessments  upon  the  persons  and  property  of  the  citizens. 
A  poll' tax  is  a  stated  simi  paid  by  each  male  of  legal  age.  A 
property- tax  is  assessed  upon  real  and  personal  estate,  and  is 
apportioned  at  a  percentage  upon  the  valuation  of  the  property.  An 
income-tax  is  assessed  upon  personal  incomes  in  excess  of  a  certain 
sum.  Duties  are  taxes  levied  on  imported  goods.  Internal 
revenue  is  the  tax  levied  on  certain  home  productions,  such  as 
tobacco  and  liquor.  This  tax  is  usually  paid  by  affixing  government 
stamps  to  the  package,  or  by  purchasing  a  license. 

EXERCISE  150.    Market  Order  Book. 

Note. — See  the  directions  given  in  connection  with  Kxercises  i  and  22. 

Orders. — Monday,  Sept.  12,  igo — .  Robert  Watson,  183  Indian 
Ridge;  2}^  lbs.  Round  Steak,  23c.;  2  bu.  Potatoes,  40c.,   2  baskets 

Peaches,  75c,;   i   basket  Pears,  8oc. Dr.   J.    B.    Henderson,  242 

Pine  Tree  Ave.;  i  pk.   Tomatoes,  45c.;  3>^  lbs.  Lamb  Chops,  17c.; 

1  pr.  Chickens,  8  lbs.,  15c. ;  3  bunches  Celery,  12c. Mrs.  H,  Green, 

47  Strawberry  Lane;  4  lbs.  Sirloin  Steak,  23c.;  3  bu.   Potatoes,  40c. 
Tuesday,  Sept.   13.     Rev.  James  O'Connor,  263  Cathedral  St.; 

2  bunches  Celery,  12c.;    3  lbs.  Butter,  24c.;   i  basket  Peaches,  75c.; 

2  qts.  Green  Peas,  12c.;  3  doz.  ears  Corn,  loc;  ;^  lb.  Suet,  14c. 

Kenneth  Kennedy,   12  Evergreen  Terrace;  Rib  Roast,  8 lbs.,  i8c.;  2 

baskets  Pears,  75c.   (C.  O.  D.). Mrs.  Margaret  Maple,  47  Blue 

Hill  Ave.;  pair  Chickens,  8^  lbs.,  14c.  (Paid). Wednesday,  Sept. 

14.     Dr.   Geo.  Warren,    22  Fernwood  St.;  Ham,  14  lbs.,  15c.;  2  lbs. 
Cheese,  i6c.;  2  lbs.  Butter,  25c.;  3  doz.  Eggs,  19c.;  i  basket  Peaches, 

70C.;  Leg  of  Lamb,  7>^  lbs.,   i8c. Mrs.  Robert  Wood,  46  Green 

Isle  Ave.;  2  gal.  pi.  Mixed  Pickles,  $1.40  (Paid). Samuel  Piper, 

426  Irish  St.;  2  bot.  Halford's  Sauce,  37c.;  4  lbs.  Veal  Cutlet,  22c.;  2 

lbs.   Butter,  27c.;  2  cans  Lima  Beans,  15c. Thursday,  Sept.  15. 

Robert  Sparling,  College  Hill;  i  bu.  Apples,  75c.;  5^  lbs.  Tenderloin, 
26c.;  6pks.  Potatoes,  15c.  (Paid). 

Supplementary  Exercises. 

149.  The  assessed  value  of  the  property  in  a  town  is  $3,265,000,  and  the  tax  to 
be  raised  is  $39,180.  What  will  be  the  rate  on  the  dollar,  and  what  will  be  the 
amount  of  A's  taxes,  his  property  being  assessed  at  $15,000? 

150.  A  tax  of  $5900  is  levied  for  building  a  school-house.  The  assessed 
valuation  of  the  village  is  $2,240,000.  What  is  the  tax  en  a  property  assessed 
at  ^750? 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  91 


LESSON  LXXII. 

The  student  will   note  carefully  the   following  general  rules  for 
charging  and  crediting  commercial  drafts  in  the  ledger: 

1.  When  you  draw  a  draft  always  credit  the  house  drawn  on. 

If  a  sight  draft  in  your  own  (or  your  bank's)  favor  debit  cash. 

If  a  time  draft  in  your  own  favor  debit  bills  receivable. 

If  the  time  draft  is  discounted,  at  once  debit  cash  and  discount. 

2.  Always  debit  (charge)  the  house  who  draws  on  you. 
If  a  sight  draft  credit  cash  for  the  amount. 

If  a  time  draft  which  you  accept,  credit  bills  payable. 

3.  If,  when  you  draw  a  draft,  you  are  in  doubt  as  to  whether  it  will 

be  honored,  simply  make  a  memorandum  of  it  until  you  know. 

EXERCISE  151.    Ledger  Practice.    Double  Entry. 

Nov,     I. — Commenced  business  with  cash,  ^7249.30. 

I  owe  Daniel  Deronda  an  account  of  JJ5476.37. 
Nov,     2, — Paid  rent  of  warehouse  for  November  by  check,  ^75. 

Bought  office  furniture  and  paid  for  same  by  check, 

I122.50. 
Nov,     4, — Bought  from  Dombey  &  Son  on  account  merchandise 

invoiced  at  I3642.45. 
Nov,     5.. — Bought  from  David  Copperfield  on  account  merchan- 
dise invoiced  at  ^4256.20. 
Nov,     7, — Sold  merchandise  valued  at  $2326.90  to  Felix  Holt; 

received  in  payment  cash  $1000  ;  his  note  at  sixty  days 

for  I900  ;  balance  on  account. 
Nov,     8, — Had  Felix  Holt's  note  discounted  at  my  bank  at  7^ 

per  cent.     Proceeds,  $ ,  credited  to  my  account. 

Nov,     g, — Sold  merchandise  valued  at  $4026.35  to  Barnaby  Rudge  ; 

drew  on  him  at  sight  for|iooo  and  at  thirty  days'  sight 

for  $1500  ;  balance  on  account.     (Both  drafts  honored.) 
Nov,  II, — Had  Rudge 's  acceptance  discounted  at  my  bank  at  7 

per  cent.     Proceeds,  $ ,  credited  to  my  account. 

Nov,  14, — Sold  for  cash,  merchandise  invoiced  at  $1642,  less  40 

per  cent  and   10  per  cent.     Cash  received,  $ . 

(Enter  net  amount  only. ) 
Nov,  16, — Dombey  &  Son  drew  on  us  at  sight  for  |iooo,  and  at 

ten  days'  sight  for  $1500.     Accepted  both  drafts  making 

them  payable  at  my  bank. 
Nov,  17, — Drew  on  Barnaby  Rudge  at  sight  for  $500  and  at  ten 

days'    sight  for  $750.     Made  both  drafts  in  favor  of 

David  Copperfield  and  forwarded  them  to  the  latter 

on  account.     (Drafts  honored.) 
Nov,  ig, — Bought  from  Guy  Mannering  on  account  merchandise 

invoiced  at  I5643.27.     Paid  office   expenses  in  cash, 

I43.29. 


^2  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

Nov,  22. — Sent  Guy  Mannering  my  note  at  thirty  days  for  $2500 

to  apply  on  account. 
Nov.  25. — Sold  for  cash,  merchandise  invoiced  at  $2^6^,  less  30 

per  cent  and  10  per  cent.     Cash  received,  $ . 

Nov.  26, — Accepted  Guy  Mannering's  drafts  on  us  at  sight  for 

I500  and  at  twenty  days'  sight  for  $750  making  both 

drafts  payable  at  my  bank. 
Nov.  28. — A  case  of  merchandise  which  cost  |iooo  was  last  night 

damaged  by  fire.     Sold  it  for  cash  at  40  cents  on  the 

dollar.     Received  insurance  $350. 
Nov.  30. — Sent  draft  on  New  York  for  I250  to  Guy  Mannering  to 

apply  on  account. 
Inventory:    Merchandise  on  hand  valued  at  ^1842.19. 


LESSON  LXXIIl. 

EXERCISE  152.    Balance  Sheet, 
Prepare  a  balance  sheet  for  the  November  set  (Exercise  151). 

EXERCISE  153.    Commercial  Draft. 

Henderson  Higgins,  409  California  Ave.,  San  Francisco,  owes 
Samuel  Sanderson,  92  Main  St.,  Buffalo,  I1046.80.  Sanderson  draws 
on  Higgins  June  3  at  sixty  days  after  date  in  favor  of  his  friend  George 
Gregson.  (Gregson's  credit  is  good  but  he  does  not  owe  Sanderson. ) 
Gregson  indorses  the  draft  and  Sanderson  has  it  discounted  (same 
date)  at  the  German- American  Bank  at  7  per  cent.  The  draft  is 
forwarded  to  Higgins  for  acceptance.  He  accepts  the  draft  June  10, 
making  it  payable  at  the  Second  National  Bank  of  San  Francisco. 
Write  the  draft  as  it  will  appear  when  paid. 

Questions.— Why  should  Gregson  indorse  the  draft  ?  Can  you  give  any  reason 
for  drawing  the  draft  "sixty  days  after  date,"  instead  of  "  sixty  days  sight  ?"  How 
much  money  should  Sanderson  receive  from  the  bank  ?  When  will  the  acceptance 
become  due  ?  If  Higgins  should  fail  to  honor  the  draft  to  whom  would  the  Bufifalo 
bank  apply  for  the  money  ? 


LESSON  LXXIV. 

EXERCISES :  Financial  Statements. 

Exercise  154. — Andrew  Jackson  invested  ^2460  in  a  partnership 
Jan.  I,  to  draw  interest  at  7  per  cent.  On  April  i  he  withdrew  I500. 
His  share  of  the  gain,  I421.65,  was  credited  to  his  account  at  the  end 
of  the  year.     Show  his  present  worth  Dec.  31. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS, 


Exercise  155. — Charles  Clarkson  invested  Jan.  i,  cash,  |iocx),  and 
1  bill  receivable  for  $1200,  due  April  i,  in  a  partnership.  The  bill  re- 
ceivable was  discounted  on  Jan.  i  at  6  per  cent,  and  considered  at  its 
net  value.  On  July  i  he  Mrithdrew  cash,  $250.  He  was  allowed  inter- 
est at  10  per  cent  on  investment.  His  share  of  the  loss  for  the  year 
was  I137.04.    Show  his  present  worth  Dec  31. 

Exercise  156. — Cash  on  hand  in  the  morning  :  Safe,  I139.60;  bank, 
J51684.37.  Cash  received  during  the  day:  Bills  and  silver,  1472,90; 
checks,  $369.40.  Cash  deposited,  I639.24.  Checks  drawn:  $47.80, 
j|5i93.2o,  I485.37,  $26.33.  Cash  paid  out  in  bills  and  silver,  $72.46. 
Show  the  condition  of  the  cash  account  in  the  evening. 

Exercise  157. — Cash  on  hand  in  the  morning:  Safe,  $204.20;  bank, 
$1279.30.  Cash  received  during  the  day:  Bills  and  silver,  $296. 22 ; 
checks,  $489.36.  Cash  deposited :  $604.37.  Checks  drawn :  $3.97, 
$47-86,  $396.25,  $49.83,  $246.97.  Cash  paid  out  in  bills  and  silver, 
$49.86.     Show  the  condition  of  the  cash  account  in  the  evening. 

Exercise  158. — Inventory  of  merchandise  on  hand  Jan.  i,  $2468.35. 
Bought  during  the  year  merchandise  costing  $2984.37.  Sold  during 
the  year  merchandise  for  $3785.64.  Inventory  of  merchandise  on 
hand  Dec.  31,  $1928.43.     Find  the  gain  or  loss  on  merchandise. 

Exercise  159. — Inventory  of  real  estate  owned  Jan.  i,  $4693.36. 
Built  houses  during  the  year  at  a  cash  outlay  of  $5327.95.  Received 
rents  during  the  year  amounting  to  $427.30.  Paid  taxes  and  other 
expenses  amounting  to  $139.65.  Sold  a  house  and  lot  for  $2637.20. 
Value  of  real  estate  owned  Dec.  31,  $14,322.  Find  the  gain  or  loss  on 
real  estate. 

Exercise  160. — Maxwell  Eaton  has  cash,  $3462.20,  and  goods 
valued  at  $2468.37,  when  he  begins  business,  and  he  owes  James  An- 
derson $396.42.  During  the  year  he  loses  $968.47.  Find  his  present 
worth  at  the  close  of  the  year,  all  debts  having  been  paid. 

Exercise  161, — John  Wilberham  has  no  capital  at  the  beginning 
of  the  year,  and  he  owes  $390  to  Charles  Clarke.  He  gains  during 
the  year  $1276.80,  and  loses  $304. 25.  Find  his  present  worth  at  the 
close  of  the  year.  • 

Exercise  162. — Richard  Hampton  owes  us  $4980  with  interest  for 
140  days  at  6  per  cent.  He  fails,  paying  forty  cents  on  the  dollar. 
Show  his  account  when  properly  closed. 

Exercise  1 63. — Our  interest  and  discount  account  shows  the  follow- 
ing items  :  discount  on  bills  receivable  sold,  $43.24  ;  discount  allowed 
us  on  personal  accounts,  $39. 25  ;  discounts  we  allowed  others  on  their 
accoimts,  $57.29;  interest  paid  on  bills  payable,  $19.37;  interest 
received  with  matured  bills  receivable,  $13.54.  Make  a  copy  of  the 
account  showing  the  loss  or  gain  on  interest. 


94  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


LESSON  LXXV. 

Wholesale  merchants  and  manufacturers  make  use  of  several  meth- 
ods of  stating  their  terms  of  payment  Some  bills  date  from  the 
shipment  of  the  goods  while  others  are  dated  ahead.  A  sixty-day  bill 
dated  August  i  will  be  due  October  i  whether  sold  on  net  terms  or 
subject  to  discounts.  It  is  customary  to  allow  ten  days  grace  on  bills, 
that  is,  a  bill  due  November  i  may  be  paid  any  time  between  Novem- 
ber I  and  November  lo.  "Terms:  90  ds.  6  per  cent  10  ds."  means 
that  the  bill  is  due  in  90  days,  but  if  paid  in  10  days  6  per  cent  discount 
will  be  allowed. 

EXERCISE  164.    Telegraphic  Order. 

Write  a  telegraphic  message  to  the  Educational  Book  Com;i)an3', 
241  Clinton  Pi.,  New  York  City,  asking  them  to  send  you  by  express 
C.  O.  D.  100  copies  of  Homer  Hamilton's  Practical  Grammar,  fifty 
copies  of  Dr.  Pancroft's  Civil  Government,  and  sixty  copies  of  Casey's 
Geometry.  All  to  be  billed  at  introduction  prices.  Do  not  exceed 
fifteen  words.  Date  to-day.  Sign  for  Cedar  Hill  Seminary,  Winder- 
mere, N.  Y.,  Bruce  Highland^  PrmcipaL  (Note.  Letters  C.  O.  D. 
count  three;  figures  100  count  three,) 

EXERCISE  165.    Bookseller's  Invoice. 

Write  the  C.  O.  D.  invoice  which  should  go  with  the  books  by 
express  to  Cedar  Hill  Seminary,  (Exercise  164).  The  introduction 
prices  are  as  follows:  Grammar,  73c.  ;  Civil  Government,  $1.12.  \ 
Geometry,  87c. 

Supplementary  Exercises. 

151.  A  man  invested  $2400  in  a  publishing  business,  and  at  the  end  of  2% 
years  he  withdrew  $2940,  being  investment  and  profits.  What  annual  rate  of  in- 
terest did  his  investment  pay  ? 

152.  How  much  exchange  on  I^ondon  at  4.81^  will  $821.99  buy? 

153.  Find  the  proceeds  of  a  note  for  I960  drawn  March  3,  at  ninety  days,  dis- 
counted April  15,  at  ^^  per  cent. 


LESSON  LXXVI 

If  a  payment  is  made  tO  apply  Otl  a  note,  St/ch  payment  should 
always  be  indorsed  on  the  back  of  the  note,  such  indorsement  requir- 
ing no  signature.  The  usual  form  is  to  give  the  date  and  write 
"Received  on  within  note,"  stating  the  amount.  An  ordinary  sepa- 
rate receipt  is  not  suflScient.     The  holder  of  the  note  may  sell  it  and 


BUSINESS  FORMS.  CUSTOMS  AND  ACCOUNTS.  95 

the  buyer  can  collect  the  face  value.  Each  receipt  indorsed  on  the 
back  reduces  the  face  value.  If  a  person  buys  a  note  before  it  falls 
due,  and  gives  value  for  it,  he  can  collect  it,  even  if  it  was  given  with- 
out value,  or  if  it  was  stolen  ;  that  is,  the  law  sustains  him  in  taking 
the  paper  for  just  what  it  says  ;  provided,  the  signature  is  genuine, 
and  the  paper  is  not  yet  due.  A  person  buying  a-  note  after  it  has 
matured  must  take  it  subject  to  any  defence  that  may  exist  between 
the  original  parties  to  it. 

EXERQSE  166.    Dry  Goods  Invoices, 

Sale  I. — Ledger  Folio  27.  Aug.  75.  Messrs.  Gamble  Bros.  & 
Co. ,  of  Columbus,  O. ,  bought  of  Haybridge  &  Hatter,  Cincinnati,  the 
following  dry  goods :  5  pc.  30  yds.  each  India  Silks,  30c. ;  5  pc.  30 
yds.  each  Wash  Silk,  50c.;  5  pc,  30  yds.  each  Taffetas,  60c.;  5  pc.  25 
yds.  each  Plaids,  50c. ;  5  pc.  30  yds.  each  Dress  Linen,  45c. ;  5  pc.  25 
yds.  each  Armure,  55c. ;  5  pc.  40  yds.  each  Storm  Serge,  60c.  Less  20 
per  cent.     Make  out  this  invoice. 

Sale  2. — Ledger  Folio  49.  Aug.  15.  Messrs.  Marshall  Park  & 
Co.,  Lexington,  Ky.,  bought  of  Haybridge  &  Hatter,  Cincinnati,  the 
following  dry  goods  :  8  pc.  25  yds.  each  Canton  Cloth,  12c. ;  8  pc.  25 
yds,  each  Cotton  Crepes,  12c,;  5  pc.  30  yds.  each  Sateens,  15c.;  5  pc. 
30  yds.  Silk  Gingham,  24c.;  5  pc.  35  yds,  each  Dress  Linen,  22c,;  3 
pc.  35  yds.  each  Cheviot,  6oc.;  3  pc.  30  yds.  each  Whipcord,  $\.'2^\  8 
pc.  30  yds.  eaCh  Homespun,  i8c.  Less  20  per  cent.  Make  out  this 
invoice. 

EXERQSE  167.    Bank  Check. 

David  Garrick  owes  Mrs.  Sarah  Gamp,  West  Chester,  Pa.,  ^21.35. 
He  mails  her  a  check  (No.  498)  on  the  Peoples  Bank,  Philadelphia, 
for  the  amount.  Date  to-day.  Mrs.  Gamp  has  no  bank  account  and 
cannot  conveniently  deposit  the  check.  She  indorses  it  correctly  and 
wisely  (to  send  through  the  mails)  and  mails  it  to  Dombey  &  Son, 
Media,  Pa.,  to  whom  she  is  indebted.  They  indorse  the  check  for 
deposit  and  turn  it  over  with  other  cash  to  their  bank.  Write  the 
check  as  it  will  appear  when  paid. 


Supplementary  Exercises. 

154.  Write  for  the  Old  Corner  Bookstore,  Boston,  a  letter  to  Dr.  Adam  Ander- 
son, Troy  College,  Troy,  N.  Y.,  advising  of  the  shipment  by  express  of  200  copies 
of  Jenkin's  Philosophy.  State  that  owing  to  unusual  demands,  the  last  edition 
was  exhausted  very  quickly,  and  the  order  was  delayed  for  the  second  edition, 
which  was  received  only  this  morning  from  the  bindery. 

155.  Write  an  application  for  a  position  which  you  are  satisfied  you  are  able 
to  fill. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


LESSON    LXXVII. 

The  directors  of  a  bank  meet  regularly  to  consider  the  char- 
acter of  the  paper  offered  for  discount,  and  to  consult  regarding  general 
business.  Sometimes  the  directors  give  the  president  or  cashier 
authority  to  pass  upon  paper  offered  for  discount.  The  ordinarj' 
of&cers  of  a  hank  are  the  president,  who  is  the  chief  executive 
officer ;  the  cashier,  who  is  the  manager  of  the  internal  workings  of 
the  bank  ;  the  paying  teller,  who  pays  out  all  moneys,  certifies  checks 
presented  for  certification,  and  has  charge  of  the  working  cash  of  the 
bank  ;  he  is  familiar  with  the  signature  of  each  depositor  and  his  daily 
balance  ;  the  receiving  teller,  who  receives  all  the  money  coming  into 
the  bank  and  makes  the  entries  in  depositors'  pass  books ;  the  note 
clerk,  who  has  charge  of  the  notes  and  commercial  drafts  handled  • 
the  bookkeeper  who  has  charge  of  the  ledgers,  and  the  messenger. 

EXERCISE  168.    Manufacturer's    Pay-Roll. 

Make  out  a  pay-roll  for  this  week  having  given  the  following  par- 
ticulars :  Harold  Samson,  8-8^^-8-7-6-5,  30c.  J.  B.  Watson,  8-4-5, 
30c.  ( Dismissed  Wednesday  Noon. )  Robert  King,  7-7^^-8-8-9-8,  35c. 
Wallace  Bruce,  8-8^,  35c.  (Reported  sick, )  James  Clark,  7-7 >< -6 j^- 
7-^5>  40C-  K.  Iv.  Smith,  6>|-7-7-7>^-8-8,  40c.  John  Thompson, 
8-8-8-8-8-5,  40c.  Robt.  Wilkins,  7-7-8-8 >^-8>^-8>^^  37c.  Donald 
Supers,  7>^-7-7>^-8-8-8,  37c.  King  Hamilton,  8-7-8,  37c.  (Absent- 
no  report.)  Henry  Clarkson,  S-6>^-8-3-3>^-2>^,  42c.  Foot  up  the 
total  wages. 

EXERCISE  169.    Bank  Check. 

W.  B.  Kennedy,  commission  merchant,  Cleveland,  O. ,  keeps  his 
money  on  deposit  with  the  German- American  Trust  and  Title  Com- 
pany. The  last  check  drawn  was  No.  2498.  He  owes  Oliver  Crom- 
well j!5ii3,  and  gives  him  a  check  in  payment.  Cromwell  asks  him  to 
write  the  check  so  that  he  may  be  able  to  get  the  money  without  iden- 
tification. Write  the  check  as  it  will  appear  when  paid.  Date  it 
to-day. 

Supplementary  Exercises, 

154.  How  much  tea,  costing  |i.2oa  pound,  must  be  mixed  with  200  pounds 
costing  48c.  a  pound,  so  that  the  mixture  can  be  sold  for  75c.  at  a  profit  of  20  per 
cent? 

157.  Find  the  difference  between  the  simple  and  compound  interest  of  $2500 
for  2%  years  at  5  per  cent  per  annum,  if  the  compound  interest  is  compounded 
semi-annually. 

158.  Find  the  largest  number  of  packages,  each  4^^  in.  by  3  in.  by  2%  in., 
which  can  be  packed  in  a  case  the  inside  measurements  of  which  are  4  ft.  ii%  in. 
loag.  3  ft»  wide,  and  3  ft.  deep. 


BUSmSSS  FORMS,  CUSTOMS  AUD  ACCOUhTTS.  97 


LESSON  LXXVlll. 

By  the  price  of  a  commodity  is  meant  its  value  estimated  in 
money,  or  simply  the  amount  of  money  for  which  it  will  exchange. 
The  exchangeable  value  of  commodities  depends  at  any  given  period 
partly  upon  the  expense  of  production  and  partly  upon  the  relation 
of  supply  and  demand.  Prices  are  affected  by  monopoly,  by  the 
opening  of  new  markets,  by  the  obstructing  of  the  ordinary  channels 
of  commercial  intercourse,  and  by  the  anticipation  of  these  and  other 
causes.  It  is  the  business  of  the  merchant  to  acquaint  himself  with 
every  circumstance  affecting  the  prices  of  the  goods  in  which  he  deals. 

EXERCISE  iro.   Hardware  Invoice. 

On  October  9, 190—,  Baker,  Walker  &  Co.,  Chicago,  sold  to  Ingram 
Bros. ,  contractors  and  builders,  476  Lansdowne  Ave. ,  the  following 
articles  :  i  Hollow  Plane,  45c;  lo  lbs.  Wro't  Washers,  (i^^^  5c. ;  8  kegs 
Nails,  lo's,  ICO  lbs.  each,  5c.;  6  kegs  Nails,  8's,  100  lbs.  each,  5>^c.; 
2  Hammers,  35c.;  4  Solid  Comfort  Ranges,  I52.50  each;  10  Screen 
Doors,  $1.85  each.  The  bill  is  paid  at  once,  and  5  per  cent  is  allowed 
for  cash.    Write  the  invoice  and  receipt  it  properly, 

EXERCISE  iri.    Promissory  Note. 

John  Peter  Cooper  owes  Timothy  Whitcomb  $243. 80.  He  gives  a 
note  to  cover  this  amount.  The  note  is  dated  to-day  and  is  worded  as 
follows :  *'  On  December  12, 190—  (cross  out  a/ler  date),  I  promise  to 
pay  to  ( cross  out  the  order  of)  Timothy  Whitcomb  or  bearer. ' '  Timo- 
thy Whitcomb  indorses  the  note  with  his  name,  adding  the  words 
"without  recourse,"  and  gives  the  note  for  merchandise  to  Roderick 
Dhu,  who  holds  the  note  until  maturity.  Write  the  note  with  indorse- 
ments. 

Questions.— When  will  this  note  actually  mature  ?  What  is  the  advantage  to 
Whitcomb  of  writing  "without  recourse"  after  his  indorsement?  Was  it  neces- 
sary  for  Whitcomb  to  indorse  this  note  to  transfer  it  ?  If  Cooper  fails  to  pay  the 
note  will  Whitcomb  still  be  liable  for  the  merchandise  bought? 

Supplementary  Exercises. 

159.  Chas.  M.  Brown  &  Co.,  42  Tremont  Row,  Boston,  advertised  for  a  young 
man  to  assist  in  office  work,  and  out  of  fifty-five  replies  received,  they  consider 
Marshall  Maxwell's  the  one  most  likely  to  be  approved.  Maxwell  has  been  in 
the  employ  of  Samuel  Smith  &  Co.,  Haymarket  Square,  and  of  the  Emerson  Manu< 
facturing  Company,  43  Devonshire  St.,  and  he  refers  Brown  &  Co.  to  each  of  his 
previous  employers.  Brown  &  Co.  write  to  both  asking  them  to  tell  them  in  con- 
fidence all  they  can  about  Maxwell.  Write  (i)  the  advertisement,  (2)  Maxwell's 
application,  (3)  one  of  the  two  letters  of  inquiry,  (4)  a  favorable  reply  to  the  letter 
of  inquiry,  (5)  an  unfavorable  reply  to  the  letter  of  inquiry. 


BUSINUSS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


LESSON  LXXIX. 


t 


The  accountant's  ledger  should  be  carefully  indexed.  It  is 
convenient  to  have  the  index  book  separate  from  the  ledger.  The 
names  of  the  customers  should  be  arranged  alphabetically,  writing  the 
surname  first  in  each  instance,  followed  by  the  page  of  the  ledger  upon 
which  the  account  appears.  A  great  deal  of  indexing  can  be  done  by 
folios  and  numbers.  All  vouchers,  invoices,  and  other  business  papers, 
should  be  so  carefully  and  orderly  filed  that  any  particular  otie  may 
be  found  in  a  moment. 

EXERCISE  U2,    Ledger  Practice.    Double  Entry, 

Directions. — There  are  several  satisfactory  methods  of  keeping  partnership 
accounts.  In  this  set,  and  in  the  other  partnership  sets  which  follow,  open  a  pro- 
prietor's account  using  the  firm  name  and  treat  it  just  the  same  as  though  there 
were  an  individual  owner,  that  is,  credit  this  account  with  the  firm  resources  and 
debit  it  with  the  firm  liabilities.  Then  open  individual  accounts  for  each  partner 
but  make  no  entries  of  original  investments  in  these  accounts.  A  partner's  indi- 
vidual account  should  contain  particulars  of  all  sums  withdrawn  by  him  for  private 
use,  and  of  sums  paid  from  his  private  funds  upon  firm  accounts.  His  share  of 
the  gain  or  loss  should  be  carried  to  his  private  account,  and  the  difference  in 
closing  the  books  should  be  a  resource  if  he  owes  the  firm,  that  is,  if  he  has  drawn 
out  more  than  his  gain,  or  if  the  firm  has  lost  money,  and  the  difference  should 
be  a  liability  if  the  firm  owes  him  more  (of  his  gain)  than  he  has  withdrawn. 
When  firm  accounts  are  closed  in  this  way  the  capital  or  present  worth  remains 
the  same  from  year  to  year,  except  members  of  the  firm  wish  to  make  additional 
investments.  The  particulars  of  the  partnership  investments  should  appear  in 
the  articles  of  co-partnership,  and  need  not  necessarily  be  made  public  in  a  gene- 
ral ledger  open  to  employes. 

J}ec,  I. — ^Marshall  Eaton  and  Willard  Merritt  have  this  day 
formed  a  co-partnership  under  the  firm  name  of  Baton, 
Merritt  &  Co. ,  to  conduct  a  wholesale  fruit  and  vege- 
table business.  They  each  invest  cash  $2000,  and  they 
have  no  liabilities. 

Dec,  3* — ^Engaged  a  buyer  at  $60  a  month.  Advanced  one-half 
month's  salary  and  $$0  for  traveling  expenses. 

Dec,  4* — Bought  450  barrels  of  winter  apples  from  Harold  Vin- 
cent, Canandaigua,  N.  Y. ,  at  $2. 10.  Paid  cash  I475  ; 
balance  on  account.     (Mdse.) 

Dec,  7. — Bought  1200  bushels  of  potatoes  from  Silas  Walker, 
Batavia,  N.  Y.,  at  42>^c.  Paid  cash  I225,  and  gave  out 
note  (no  grace)  at  fifteen  days  with  interest  at  6  pel 
cent  for  the  balance.     (Mdse.) 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  ^ 

Dec,  TO, — Sold  420  barrels  of  apples  to  Chas.  I/awrence  &  Co., 
Rochester,  at  $3. 15.  Received  in  payment,  cash  ^712.50; 
balance  on  account. 

Dec,  13, — Marshall  Katon  withdrew  for  private  Use  cash  $37.50. 

Dec,  13, — ^Willard  Merritt  went  to  New  York  for  the  firm  and 
paid  his  traveling  expenses  of  $22.35  from  his  own 
private  funds. 

Directions. — Charge  Katon's  withdrawal  to  his  own  private  account.    Credit 
Merritt  with  the  traveling  expenses,  and  charge  the  expense  account. 

Dec,  15. — Bought  948  barrels  of  winter  apples  from  James  Parker, 
Bast  Bloomfield,  N.  Y,,  at  $2.i2}4.  Gave  him  cash 
1:932.50,  a  thirty -day  draft  on  Chas.  Ivawrence  &  Co.  for 
|2oo,  balance  on  account. 

Dec,  X7. — Sold  980  bushels  of  potatoes  to  Kimball  Bros. ,  Buffalo, 
at  87>^c.  Received  in  payment  a  draft  on  New  York 
for  $322.50,  a  draft  at  twenty-days  sight  (accepted)  on 
Chas.  Ivawrence  &  Co.,  Rochester,  for  $312.15,  balance 
on  account. 

Dec,  18, — Had  Ivawrence  &  Co.'s  acceptance  discounted  at  our 
bank.     Proceeds,  $302. 13,  placed  to  our  credit. 

Dec,  ig, — ^Willard  Merritt  withdrew  for  private  use  cash  $113.75. 

Dec,  ^o. — Sent  traveler  a  check  for  $69.50,  to  cover  balance  of 
this  month's  salary  and  traveling  expenses  to  date. 

Dec,  ^s, — Paid  our  note,  $ ,  with  interest  71c.,  due  to-day  by 

certified  check. 

Dec.  23. — Accepted  Harold  Vincent's  draft  on  us  at  ten-days' 
sight  for  $219.87,  in  favor  of  Peter  Webster,  Elmira, 
N.  Y. 

Dec,  24, — Sold  for  cash  722  barrels  of  apples  at  $3.62^^. 

Dec,  26, — Received  from  Chas.  Lawrence  &  Co.  a  draft  on  New 
York  for  $75  to  apply  on  account. 

Dec,  27, — Issued  a  check  on  our  bank  for  $519.37,  to  pay  a  private 
promissory  note  made  by  Marshall  E^aton  and  due 
to-day. 

Directions. — This  should  be  charged  the  same  as  though  Eaton  withdrew  the 
amount  for  his  own  private  use. 

Dec,  2g, — Paid  a  freight  bill  of  $49.80  by  check  (charge  to  Mdse.). 

Dec,  30, — Sold  for  cash  48  barrels  of  apples  at  $3.87^. 

Inventory  :  Apples  valued  at  $3.75  a  barrel. 
Potatoes  valued  at  90c.  a  bushel. 


100  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

LESSON  LXXX. 
EXERCISE  ir3.    Balance  Sheet. 

Make  out  a  balance  sheet  to  accompany  the  December  set. 

EXERCISE  ir4.    Commercial  Draft. 

Burns,  Biddle  &  Co, ,  of  Fort  Worth,  Texas,  owe  James  Walter 
Clark,  of  Denver,  $322. 10.  Clark  draws  at  thirty-days'  sight  for  the 
amount,  making  the  draft  to  his  own  order  and  indorsing  it  over  to 
the  order  of  R.  W.  White  &  Co.,  Houston,  Texas.  White  &  Co.  have 
the  draft  discounted  at  the  Texas  National  Bank.  Write  this  draft 
including  acceptance  and  indorsements. 

Questions. — Follow  this  draft,  in  a  written  note,  from  the  time  it  leaves  Clark's 
hands  until  Burns,  Biddle  &  Co.  file  it  away  with  their  receipts  and  vouchers.  If 
Burns,  Biddle  &  Co.  fail  to  pay  the  acceptance  at  maturity,  from  whom  can  the 
bank  demand  payment  ?    To  whom  will  they  apply  first  ? 


LESSON  LXXXl. 

The  person  who  receives  a  promissory  note  in  good  faith  for 
fair  value  before  the  day  of  maturity,  takes  it  free  from  all  defects  of 
title  and  from  all  claims  that  might  be  set  up  against  any  preceding 
holder.  It  is  permissible  to  purposely  antedate  or  postdate  negotiable 
paper.  A  note  having  two  or  more  makers  is  called  a  joint  note. 
If  written  "We  jointly  and  severally  promise  to  pay,"  each  maker  is 
individually  liable  for  the  whole  amount ;  if  written,  "we  promise  to 
pay,"  each  is  liable  for  his  share.  A  note  written  *  *  I  promise  to  pay," 
and  signed  by  two  or  more  persons  is  a  joint  individual  note.  A  note 
written  "  I  promise  to  pay  J.  White  or  H.  Brown,"  would  not  be  con- 
sidered a  good  note  and  neither  could  collect.  The  maker's  signature 
in  a  note  must  appear  in  some  form  upon  some  part  of  the  paper.  It 
may  be  affixed  by  himself  or  his  authorized  agent,  and  it  may  be  the 
full  name  or  the  initials  only.  The  language  of  the  paper  must  be  a 
distinct  promise  to  pay. 

EXERCISE  ITS.    Promissory  Note. 

George  Jaquith  and  George  Donnelly  borrow  I350  from  Robert 
Craig.  They  give  as  security  a  joint  and  several  note,  with  interest  at 
8  per  cent,  payable  at  the  Tenth  National  Bank.  Dated  to-day  at 
four  months.     Write  the  note.     Mark  on  it  the  date  of  maturity. 

Questions.— How  much  will  each  be  required  to  pay  ?  Suppose  that  Donnelly 
cannot  pay  anything  at  maturity,  and  Jaquith  pays  his  one-half  to  Craig,  how 
should  Craig  receipt  for  Jaquith's  payment  ?    How  much  will  be  due  at  maturity? 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


EXERCISE  U6.    Bank  Check. 

J.  R.  Wood  &  Son,  Pittsburgh,  issue  a  check,  No.  643,  on  the  North- 
western National  Bank,  for  I49.37,  payable  to  the  order  of  William 
Cowper.  Cowper  indorses  the  check  for  deposit  in  the  Iron  City  Na- 
tional Bank.     Write  the  check  with  indorsement.     Date  to-day. 

EXERCISE  Ut.    Credit  Memorandum, 

Miss  Jennie  Watson,  Fern  Hill,  Pa. ,  returned  to  Peterkin  &  Watson, 
of  West  Chester,  3^  yds.  of  China  Silk,  charged  at  85c.  per  yard  in 
an  order  for  dry  goods  placed  with  them  yesterday.  Make  out  a  credit 
memorandum  to  be  given  to  Miss  Watson  upon  return  of  the  silk. 
Date  to-day 

Supplementary  Exercises. 

160.  Face  of  note,  $396.20.  Date,  Aug.  3  at  3  months.  Discounted  Aug.  15  at  7 
per  cent.    Find  proceeds. 

161.  Face  of  note,  $846.37,  Date,  June  19  at  60  days.  Discounted  July  i  at  6% 
per  cent.    Find  proceeds. 

162.  Face  of  note,  $806.40.  Date,  May  20  at  go  days.  Discounted  May  24  at  8 
per  cent.    Find  proceeds. 

163.  Face  of  note,  $726.40.  Date,  May  3  at  4  months.  Discounted  June  19  at "]%, 
per  cent.    Find  proceeds. 


LESSON  LXXXII. 

Small  charges  of  one  item  often  occur  in  business.  These  do  not 
require  the  assignment  of  a  separate  ledger  account  and  are  usually 
massed  under  one  heading  called  petty  accounts.  Instead  of 
writing  the  names  of  the  debtors  in  the  centre  over  the  account,  they 
are  placed  at  the  left,  upon  the  debit  side,  and  the  payments  when 
credited,  are  placed  at  the  right,  on  the  corresponding  lines.  In  many 
business  houses  a  petty  cash  book  is  kept.  A  sum  large  enough  to 
meet  incidental  expenses  is  taken  from  the  bank  and  charged  to 
petty  cash  in  the  general  cash  book.  All  small  expenses  are  paid 
out  of  this  fund,  and  the  items  are  entered  in  the  petty  cash  book, 
which  is  really  an  expense  book  or  rather  an  expense  account  in  the 
form  of  a  book. 

EXERCISE  irs.    Steamship  Freight  Bill. 

Hugh  Campbell  &  Co.,  48  Union  St.,  Boston,  have  shipped  to  the 
Philadelphia  Shoe  Company,  99  S.  Sixth  St. ,  Philadelphia,  6  cases  of 
Eureka  Patent  Uppers,  weighing  240  lbs.  each.  The  freight  rate  is 
70c.  per  100  lbs.  No  charges  have  been  paid  in  Boston.  There  is  a 
storage  charge  of  I1.50.  Make  out  the  freight  bill  and  receipt  it  for 
the  agent  per  Philip  Freighthandler.     Date  to-day.     Trip  No.  385. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


EXERCISE  179.    Railway  Freight  BiU. 

Charles  Lawrence  &  Co.,  60  Commerce  St.,  Boston,  ordered  from  Samuel 
Peterson,  Syracuse,  N.  Y.,  100  barrels  of  apples.  They  weigh  180  lbs. 
each  and  were  shipped  via  Albany  in  W.  S.  car  No.  4904.  The  freight  rate 
is  25  cents  per  100  lbs.  Make  out  freight  bill,  adding  ^1.35  demurrage. 
Progressive  No.  5643.  Way-bill  1048,  dated  five  days  ago.  Receipt  the  bill 
for  B.  &  A.  Railroad,  per  Benj.  Prompt. 

Supplementary  Exercises. 

164.  Invoice  :  Gross  amount,  $3498,42,  with  40,  5  and  2>^  oflF.    Find  net  amount. 

165.  Invoice  :  Gross  amount,  $8042.37,  with  30,  5  and  %  off.    Find  net  amount. 

166.  Invoice  :  Gross  amount,  $7204.35,  with  25,  2%  and  i  off.  Find  net  amount. 
16^.  Invoice  :  Gross  amount,  $2146.34,  with  10,  5  and  2  off.  Find  net  amount. 
168.  Invoice :  Gross  amount,  $1002.04,  with  50,  2>^  and  %  off.  Find  net  amount. 


LESSON  LXXXIII. 
EXERCISE  180.    Manufacturer's  Pay  Roll. 

Directions.— Many  large  houses  pay  off  their  employes  by  handing  to  each 
either  directly  or  through  the  heads  of  departments,  an  envelope  containing  the 
exact  amount  due.  If  the  proper  change  has  been  procured  from  the  bank,  and 
the  largest  bills  and  coins  possible  have  been  put  in  the  envelopes,  the  cash  should 
be  neither  over  nor  short  when  all  the  envelopes  are  filled.  If,  for  instance,  there 
is  a  25-cent  piece  over,  it  is  evident  that  some  employe's  envelope  is  short  25  cents ; 
if  there  is  not  change  enough,  some  envelope  has  too  large  a  sum  in  it. 

Make  out  a  pay-roll  for  the  week  ending  August  18,  190 — ,  having 
given  the  following  particulars  :  John  Summer,  8-7-8-7-8-8,  45c. ,  $1 
advanced.  H.  G.  Hamilton,  9-8-7^^-7-7-6,  50c.  John  H.  Kindall, 
6-6-6-7-7-6,  55c.,  $3  advanced.  Chas.  Palmer,  4^^-4-3-9,  52c.  (Re- 
ported ill. )  Walter  Palmer,  7-7-8-9-9-8,  48c.  Miss  Sarah  Walker, 
7-7-7-7-7-7,  38c.,  $7.  advanced.  Miss  Mary  Williams,  8-7-8-8-7-7, 
38c.  Miss  Nellie  Smith,  7-7-7-7-7-7,  36c.  Miss  Harriet  Griffith,  7-7- 
7-8-7-7,  38c.  Miss  Helen  Brooks,  7-7-7-7-7-6,  38c.  Charles  Arling- 
ton, 8-8-2 >^,  48c.  (No  report.)  William  Jones,  8-8-8-8-7-8,  52c. 
George  Wheeler,  8-8-8-4-4-8,  50c.  Enter  the  bills  and  silver  neces- 
sary. 

EXERCISE  181.    Bank  Check. 

Thomas  R.  Walmsley  keeps  his  money  on  deposit  in  the  Farmers' 
Bank,  Baltimore.  The  last  check  drawn  was  No.  2136.  He  writes  a 
check  for  |2ooo  in  favor  of  Chas.  F.  Snelgrove,  Meaford,  Ont.  To 
protect  the  check  against  any  possible  change  of  figures  he  writes  the 
amount  * '  two  thousand ' '  in  words  and  in  red  ink  across  the  face  of 
the  check.  He  places  a  neatly  ruled  (red  ink)  line  above  and  below 
the  words  "two  thousand  "  written  across  the  face.  The  check  is  sent 
by  mail  to  Snelgrove  who  indorses  it  for  deposit,  and  mails  it  to  the 
Bank  of  Commerce,  Toronto.  This  bank  forwards  it  through  the 
usual  channels  for  collection.    Write  the  check  with  indorsement. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  103 


Supplementary  Exercises. 

169.  Find  in  American  currency  the  duty  on  a  shipment  of  linens  from  Ire- 
land, invoiced  at  ^£426  12s.  gd.,  at  35  per  cent.    Exchange  $4.87. 

170.  An  insolvent  debtor's  assets  are  $9364.20  ;  his  liabilities  are  $18,624.50,  of 
which  $1268.20  represents  preferred  claims.    How  much  can  he  pay  on  the  dollar? 


LESSON  LXXXIV. 

The  commerce  of  a  country  depends  very  largely  upon  (i)  its 
natural  products,  (2)  the  skill  and  enterprise  of  its  inhabitants  in 
manufacturing,  (3)  its  domestic  and  foreign  carrying  trade.  The  his- 
tory of  commerce  is  really  the  history  of  civilization, — the  history  of 
human  wants,  and  how  they  have  been  satisfied. 

EXERCISE  182.    Furniture  Invoice. 

Messrs.  Brown  &  Bums,  Lancaster,  Pa. ,  ordered  from  The  E.  R. 
Holman-Kreichler  Company,  Philadelphia,  the  following  bill  of  goods: 
15  rolls  Tapestry,  160  yds.  each,  at  62>^c.;  6  rolls  Brussels,  140  yds. 
each,  at  yS^c;  160  yds.  Moquette,  at  ^1.45  ;  12  Persian  Rugs,  6X9» 
$11.25  each  ;  12  Turkish  Rugs,  4}^  X  7.  19-25  each  ;  500  yds.  Matting, 
at  45c. ;  100  yds.  Linoleum,  at  27^c.  Discount  of  2^  per  cent 
allowed.     Make  out  this  invoice. 

Supplementary  Exercises. 

171.  In  an  invoice  which  you  have  received  from  a  wholesale  house,  you  find, 
after  you  have  honored  a  draft  for  the  face  of  the  invoice,  an  error  in  addition 
which  makes  the  charge  $15  too  much.  Write  a  letter  to  the  wholesale  house 
calling  their  attention  to  the  matter. 

172.  Write  a  letter  to  an  out-of-town  customer  who  is  very  much  behind  with 
bis  payments,  asking  the  reason,  and  urging  an  early  settlement. 


LESSON  LXXXV. 

It  is  interesting  to  note  the  use  made  of  commercial  drafts  in 
connection  with  bills  of  lading.  For  instance,  the  live  cattle  are 
paid  for  in  Texas  by  the  proceeds  of  a  draft,  with  bill  of  lading 
attached,  upon  Chicago,  where  they  are  slaughtered.  Bills  of  lading 
for  the  dressed  meat  shipped  East  are  accompanied  by  drafts  on  New 
York,  and  the  shipment  per  steamer  to  Liverpool  or  Glasgow  is  drawn 
against,  in  sterling,  upon  London.  The  latter  draft  is  sold  to  a  New 
York  banker,  who  in  turn  draws  against  it  in  favor  of  merchants  who 
are  buying  foreign  exchange. 


I04  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


EXERCISES  183  and  184.     Bill  of  Lading  and  Draft. 

Hugh  Cleland,  New  York,  shipped  by  N.  Y.  O.  &  W.  Ry.,  to  Utica,  N.  Y., 
25  bundles  Leatherette,  ordered  by  Lehigh  Shoe  Co.  Each  bundle  is  marked 
Tj,  Sm  Co, ;  weight  140  pounds  per  bundle  ;  rate  47  cents  per  icx)  pounds, 
first  class.  Qeland  draws  on  Lehigh  Shoe  Co.  for  ^120,  and  sends  the  draft, 
with  bill  of  lading  attached,  to  Utica  Citizens'  Bank  for  collection.  Make 
out  the  bill  of  lading  and  the  draft.  Sign  the  bill  for  J.  R.  Lindsay, 
Agent. 

Supplementary  Exercises. 

173.  On  goods  invoiced  at  jCH4  H^-  6rf.,  the  duty  was  20  per  cent ;  on  another 
lot  invoiced  at  ^^203  16s.  8d.y  the  duty  was  25  per  cent ;  and  on  another  lot  invoiced 
at  jC9^  ^2>^-  Z^'i  the  duty  was  12J4  per  cent.  Find  the  entire  duty  in  United  States 
currency.    (Exchange  $4.87.) 

174.  If  sterling  exchange  is  quoted  at  $4.84,  and  exchange  in  I,ondon  or 
Frankfort  is  at  20.25  niarks  per  pound,  what  should  a  bill  of  3800  marks  be  worth 
in  New  York  ? 


LESSON  LXXXVI. 

When  a  merchant  decides  that  a  particular  customer  is  exceeding 
a  safe  basis  of  credit,  he  must  discontinue  selling  goods,  except 
for  cash,  to  this  customer  until  the  indebtedness  is  reduced.  To  find 
the  exact  indebtedness  the  outstanding  notes  must  be  considered  with 
the  balance  due  on  open  account.  To  estimate  the  standing  and 
reliability  of  a  customer,  the  merchant  must  note,  Jirsl,  whether  bills 
are  paid  promptly  as  they  become  due  ;  secondly ,  the  condition  and 
dispo^tion  of  notes  previously  received  on  account.  A  customer's 
credit  may  under  ordinary  conditions  be  considered  doubtful  if  he 
finds  it  necessary  to  renew  his  bills  payable. 

EXERCISE  185.    Retail  Double  Entry  Ledger. 

Note.— See  the  directions  given  in  connection  with  Exercise  109.  The  items 
given  in  the  following  exercise  are  taken  from  the  ledger  of  a  country  merchant. 

Sales. — Sold  John  Farmer,  Bpping,  O.,  as  follows  :  June  i  (p.  7), 
13  lbs.  Sugar,  $1.00  ;  3  lbs.  Raisins,  45c.;  2  prs.  Binding  Gloves,  8oc.; 
2  Rakes,  6oc.;  2  lbs.  Tea,  70c.  June 3  (p.  13),  6  pkgs.  Oat  Meal,  72c.; 
5  yds.  Flannel,  $1.50.  June  6  (p.  18),  2  Flannel  Shirts,  $1.60  \  2 
Scarfs,  40c,  June  11  (p.  24),  6  lbs.  Brown  Sugar,  36c. ;  3  oz.  Nutmeg, 
24c.  June  12  (p.  26),  2  Tin  Pails,  30c.  2  Tin  Dippers,  24c.;  i  Wash- 
tub,  60C.  June  17  (p.  38),  12  yds.  Dress  Goods,  |io.8o ;  6  spools 
Thread,  36c. ;  2  doz.  Buttons,  40c.  June  20  (p.  43),  i  Umbrella,  I1.40; 
June  22  (p.  49),  2  lbs.  Cofifee,  70c.  Jmte  23  (p.  50),  2  Pitch  Forks, 
I1.50 ;  I  lyawn  Mower,  I6.50.    June  26  (p.  57),  3  cans  Tomatoes,  36c.; 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  IQ5 

I  Letn.  Extract,  20c.  June  30  (p.  62),  2  prs.  Shoes,  |3.cx>.  July  2 
(p.  68),  Case  of  Fireworks,  I3.00 ;  2  lbs.  Raisins,  30c.  July  5  (p.  72), 
I  bot.  Cod  Liver  Oil,  85c.;  13  lb.  Sugar,  $1.00.  July  7  (p.  75).  3  ^t 
Bluing,  75c. ;  2  lbs.  Tea,  70c. ;  3  qts.  Vinegar,  30c. ;  2  gal.  Molasses, 
60c.  July  7^  (p.  88),  5  gal.  Kerosene,  65c.  July  //  (p.  93).  i  Scythe, 
|i.6o ;  I  Rake,  25c.  (Note  that  the  total  prices  and  not  the  prices  per 
pound,  etc.,  are  given.) 

Credits.— John  Farmer  is  credited  with  the  following  payments : 
June  17  (p.  38),  Cash,  |io.  June  20  (p.  43).  12  doz.  Eggs  at  13c. 
June 30  (p.  62),  I  tub  Butter,  56  lbs.,  at  i8c.  July  27  (p.  93),  Cash, 
I5.  The  account  should  show  the  balance  due  July  i  and  also 
August  I. 

Supplementary  Exercises. 

17s.    Gross  invoice,  I2468.20.  Discounts,  30,  20  and  5  oflf.    Find  net  amount. 

176.  Gross  invoice,  $1004.95.  Discounts,  40,  7.%  and  %  off.    Find  net  amount. 

177.  Gross  invoice,  I9999.99.  Discounts,  33H,  sH  and  %  off.    Find  net  amount 


LESSON  LXXXVII. 

The  true  par  of  exchange  is  the  value  of  the  standard  coin  unit 
of  one  country  estimated  in  the  coinage  of  another.  The  premium 
or  discount  on  drafts  is  called  the  course  of  exchange,  and  de- 
pends upon  the  relative  values  of  imports  and  exports  between 
countries.  If  New  York  is  in  debt  to  London,  that  is,  if  London 
banks  hold  more  drafts  on  New  York  than  New  York  banks  hold  on 
London,  then  exchange  on  London  is  at  a  premium  in  New  York.  The 
reason  for  this  lies  in  the  fact  that  each  additional  draft  sold  in  New 
York  on  London  indicates  that  the  amount  of  the  draft  in  actual  gold 
coin  or  bullion  must  be  shipped  to  London  at  the  New  York  bank's 
expense  to  meet  the  draft.  Gold  is  always  shipped  to  cover  the  bal- 
ance due  and  each  additional  London  draft  sold  in  New  York  in- 
creases the  balance.  If  the  balance  is  in  favor  of  New  York,  gold 
must  be  shipped  from  London  to  meet  it ;  then  of  course  exchange  on 
London  is  at  a  discount  in  New  York.  Payments  for  merchandise 
imported  into  the  United  States  are  made  by  drafts  against  mer- 
chandise exported  abroad,  and  when  these  do  not  oflf-set  each  other 
the  difference  causes  an  advance  or  decline  of  the  rate  of  exchange. 
The  rate  of  exchange  between  countries  can  never  vary  much  from 
the  cost  of  transporting  coin  between  them,  for  if  the  price  of  ex- 
change is  higher  than  the  cost  of  shipping  gold,  the  merchant  will 


io6  BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 

save  money  by  shipping  the  coin  himself  in  payment  of  his  foreign 
accounts.  Foreign  drafts  are  negotiated  through  bankers  who  make 
it  a  specialty  of  their  business,  and  these  drafts  finally  come  for  settle- 
ment to  Ivondon,  the  principal  clearing  house  of  the  world* 

EXERCISE  186.    Daily  Cash  Balance  Book. 

Note.— The  student  is  referred  to  the  directions  given  in  connection  with 
Exercise  123. 

Items. — May  i. — Balance  on  hand  (bank,  ^904.37  ;  safe,  ^269.34), 
cash    sales  of  merchandise,  ^485.24;   bills  receivable  dis- 


counted, $943.20;  proceeds,  $921.36;  personal  accounts  received  per 
cash  book,  I428.40  ;  personal  accounts  paid  per  check  book,  I409.60  ; 
sundries  paid  by  check,  $37.40 ;  from  safe  per  petty  cash  book,  $8.24  ; 

deposited,  $904.65.     May  2. — Balance  on  hand,  $ ;  cash  sales  of 

merchandise,  $639.22;  personal  accounts  received  per  cash  book, 
$542.30;  personal  accounts  paid  per  check  book,  $603.47;  sundries 
paid  by  check,  $73.24;  from  safe  per  petty  cash  book,  $19.24;  Mr. 
Weed  (partner)  withdrew  for  private  use  from  safe,  $125 ;  deposited, 
$962.41.  May  3. — Balance  on  hand,  $ — ;  cash  sales  of  merchan- 
dise, $549.84;  bills  receivable  discounted,  $719.43  ;  proceeds,  $691.42  ; 
personal  accounts  received  per  cash  book,  $901.22;  bills  payable 
charged  to  our  account  in  the  bank,  $702.45  ;  personal  accounts  paid 
per  check  book,  $91.42 ;  rent  paid  per  check  book,  $150 ;  sundries 
paid  by  check,  $38.25  ;  from  safe  per  petty  cash  book,  $7.32  ;  depos- 
ited, $1304.27.    May  4. — Balance  on  hand,  $ . 

Supplementary  Exercises. 

178.  Write  an  order  on  a  merchant  for  $25  worth  of  goods  to  be  given  to  a 
friend  whom  you  name  and  to  be  charged  to  your  account. 

179.  Write  a  due  bill  in  favor  of  a  carpenter  who  has  put  in  some  shelving 
valued  at  $20,  payable  in  goods  from  your  store. 


LESSON  LXXXVIII. 

When  goods  are  received  to  be  sold  on  commission  a  consign- 
ment account  is  opened  for  each  particular  lot,  as  *'  Brown's  Consign- 
ment, No.  I,"  "Smith's  Consignment,  No.  3,"  etc.  When  goods  are 
shipped  to  be  sold  on  commission  a  shipment  account  is  opened  for 
each  particular  lot,  as  "Shipment  to  Jones  &  Co.,"  "Shipment  to 
Wells  &  Co.,"  etc.  The  person  who  ships  the  property  is  called  the 
consignor^  and  the  person  who  receives  the  property  is  called  the  con- 
signee. The  student  will  note  carefully  the  following  general  rules 
for  charging  and  crediting  shipments  and  consignments,  and  the  ex- 
penses and  commissions  connected  therewith. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  107 

1.  Charge  (debit)  the  shipment  with  the  cost  of  the  goods  and 

expenses. 

2.  Credit  the  shipment  with  the  net  proceeds  when  received. 

Note. — The  diflference,  or  balance  of  the  amount,  shows  your  gain  or  loss  on 
the  shipment. 

3.  Charge  (debit)  the  consignment  with  all  charges  which  you 

have  to  pay. 

4.  Credit  the  consignment  with  all  sales  made  from  it. 

5.  Charge  (debit)  the  consignment  with  your  commission  on  the 

sales. 

Note.— The  difference,  or  balance  of  the  account,  shows  the  net  proceeds  due 
the  consignor. 

6.  Charge  (debit)  the  consignment  with  the  net  proceeds  when 

you  make  payment. 

BXERCISE  I8<r.    Ledg:er  Practice.    Double  Entry. 

Note.— This  is  a  partnership  commission  set.    The  student  will  note  carefully 
tine  instructions  already  given  for  keeping  partnership  accounts. 

Jan,  I, — Robert  and  Charles  Stevenson  have  this  day  formed  a 
copartnership  under  the  firm  name  of  Robert  Steven- 
son &  Bro.,  to  conduct  a  commission  and  jobbing  busi- 
ness in  general  produce.  Each  invested  cash  $1250. 
Henry  Quick  &  Co. ,  lyancaster,  Pa. ,  owes  Robert  Ste- 
venson, on  account,  ^137.48,  and  John  Push  holds  a 
note  due  January  10  for  the  same  amount  against 
Charles  Stevenson.  Both  accounts  are  assumed  by  the 
partnership,  the  one  as  a  resource  and  the  other  as  a 
liability. 

Jan,  2, — Rented  a  warehouse  and  paid  the  first  month's  rent  by 
check,  $125. 

Jan,    3, — Bought  for  cash  300  bbls.  apples  at  I2.25. 

Jan.  5. — Shipped  250  bbls.  apples  to  R.  M.  Brown  &  Co.,  to  be 
sold  on  our  account  and  risk.  Paid  insurance,  $5.y)f 
and  drayage,  $13.50,  in  cash. 

Jan,  7. — Received  from  Henry  R.  King  &  Co. ,  to  be  sold  on  their 
account  and  risk,  485  bus.  potatoes  at  67c.;  48  bbls. 
onions  at  I5.35;  365  bbls.  apples  at  I2.15;  193  bbls. 
sweet  potatoes  at  I1.50.  Paid  freight,  I93.45,  and  dray- 
age, I32.20,  in  cash. 

Jan,  10, — Paid  our  note  due  to-day  in  cash. 

Jan,  II, — Sold  485  bus.  potatoes,  from  King  &  Co.'s  consign- 
ment, for  cash,  at  90c. 

Jan,  12. — Sold  Charles  Anderson  &  Co.,  for  cash,  all  the  apples 
on  hand  (415  bbls.),  at  I3.25,  18  bbls.  onions  at  I8.37X, 
47  bbls.  sweet  potatoes  at  1 1.90. 

Jan,  14, — ^Received  from  Walter  White,  to  be  sold  on  his  account 
and  risk,  684  bus.  potatoes  at  79c.  Paid  freight,  ^7.25 
in  cash. 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS 


Jan,  15, — Received  a  check  from  Henry  Quick  &  Co.  in  full  of 
account. 

Jan,  17, — Received  on  account  sales  from  R.  M.  Brown  &  Co. 
They  enclose  their  check  for  $723.40,  to  cover  the  net 
proceeds. 

Jan,  18, — Sold  Bruce  Walker  &  Co.,  30  bbls.  onions  at  $7.60; 
146  bbls.  sweet  potatoes  at  $2.12  ;  420  bus.  potatoes  at 
98c.  Received  in  payment  cash  $625  ;  balance  on  ac- 
count. 

Jan.  22. — Paid  office  expenses  in  cash,  $47.35. 

Jan,  23, — Robert  Stevenson  withdrew  for  private  use  cash  $122.35. 

Jan,  24, — Rendered  Henry  R.  King  &  Co.  an  account  sales.  De- 
ducted our  commission  of  10  per  cent  and  additional 
expenses  of  consignment,  $4.95.  Enclosed  our  check 
for  the  net  proceeds,  $ . 

Jan,  27, — Drew  on  Bruce  Walker  &  Co.,  at  twenty  days'  sight,  for 
the  balance  of  their  account,  and  had  draft  discounted  in 
our  bank.  Discount,  $7.25.  Proceeds  placed  to  our 
credit.     (Draft  honored.) 

Jan,  2g, — Sold  for  cash  264  bus.  potatoes,  from  White's  consign- 
ment, at  I1.05. 

Jan,  30. — Rendered  an  account  sales  to  Walter  White.  Deducted 
our  commission  of  10  per  cent,  and  enclosed  a  draft  on 
New  York  for  the  net  proceeds,  $ , 

Jan.  31. — Paid  office  expenses  in  cash,  $32. 15. 

EXERCISE  188.    Commission  Mercliant's  Order  Slip. 

Make  out  the  order  slip  for  the  sale  made  Jan.  12  to  Charles  Ander- 
son &  Co.     (Exercise  187.)    Sold  by  R.  S.     No.  246. 

EXERCISE  189.    Commission  Mercli^t's  Account  Sales. 

Write  up  the  account  sales  to  be  rendered  Henry  R.  King  &  Co. 
No.  426.  (Exercise  187.)  Produce  was  received  per  steamer  "  Dela- 
ware." 

EXERCISE  190.    Commission  Invoice. 

Make  out  the  invoice  for  King  &  Co.  to  accompany  their  shipment 
of  Jan.  2,  received  Jan.  7.     (Exercise  187.)     Steamer  "Delaware." 

EXERCISE  191.    Bank  Checli. 

Write  the  check  (Exercise  187)  received  from  Henry  Quick  &  Co. 
January  15.     Date  it  January  13.     Indorse  the  check  for  deposit. 

EXERCISE  192.    Balance  Sheet. 
Make  out  a  balance  sheet  to  accompany  the  January  set  (Ex.  187), 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS.  «09 


EXERCISE  193.    Commercial  Draft. 

Chas.  Emerson  &  Co.,  450  Missouri  Ave.,  St.  Louis,  owe  Frank 
French  &  Co.  ,*New  Orleans,  $843. 20.  French  draws  at  thirty  days'  sight 
for  the  amount  in  favor  of  Ward  McKay,  409  Michigan  Ave. ,  Chicago, 
and  mails  the  draft  to  McKay  to  apply  on  account.  •  McKay  has  the 
draft  discounted  at  the  First  National  Bank,  Chicago.  Write  the  draft 
with  indorsement 


LESSON  LXXXIX. 

The  advantages  to  the  public  of  our  national  banking  system, 

briefly  summed  up,  are  as  follows  :  ^rsl,  the  issue  and  circulation  of  a 
national  currency  of  uniform  value ;  second,  perfect  security  to  the 
holders  of  bills  by  the  pledge  of  the  United  States. 

A  bank  statement  is  a  balance-sheet  of  the  bank's  main  ledger, 
and  is  sworn  to  by  the  cashier  and  attested  by  several  of  the  directors; 
it  is  published  at  the  time  of  its  making  in  the  local  newspapers.  The 
resources  in  such  a  statement  usually  consist  of  items  due  from 
other  financial  institutions,  bank-bills  and  specie  on  hand,  bonds  de- 
posited with  the  U.  S.  Treasurer ;  loans  and  discounts  consisting  of 
discounted  notes,  drafts,  etc. ,  owned  and  held  by  the  bank  and  which 
are  maturing  and  being  paid  in  from  day  to  day  ;  real  estate,  etc.  The 
liabilities  consist  of  the  accounts  due  depositors  and  other  banks  ; 
outstanding  circulation  of  bank-notes ;  undivided  profits ;  surplus 
fund ;  original  capital  stock,  etc. 

EXERCISE  194.     Printer's  Order  Book. 

Prepare  a  list  of  nine  imaginary  orders  similar  to  those  given  in 
Exercise  131,  and  write  up  the  order  book,  entering  all  necessary  par- 
ticulars. 

EXERCISE  195.     Promissory  Note. 

On  February  13,  190 — ,  Dombey  and  Son  gave  Guy  Mannering  a 
two-months'  note  for  ^243,  payable  at  the  Faneuil  Hall  Bank.  Man- 
nering holds  the  note  until  maturity,  when  Dombey  &  Son  make  a 
cash  payment  of  $45.  This  payment  is  receipted  on  the  note.  On  May 
5  an  additional  payment  of  |6o  is  made  and  receipted  for.  On  May 
25  Mannering  transfers  the  note  without  becoming  liable  for  its  pay- 
ment to  Silas  Wegg.  On  June  15  Wegg  collects  the  amount  due,  in- 
cluding interest  at  6  per  cent  from  maturity.  Write  the  note  with 
indorsements. 

Questions.— How  much  will  Wegg  collect?  What  are  the  advantages,  if  any, 
of  holding  a  note  already  matured  rather  than  in  taking  a  renewal  ? 


BUSINESS  FORMS,  CUSTOMS  AND  AOCOUNTS, 


LESSON  XC. 

It  IS  entirely  unsafe  to  send  a  check  or  drafl  indorsed  in  blank 

through  the  mails.  Such  a  check  or  draft  is  payable  to  bearer. 
When  buying  a  draft  on  New  York,  or  other  city,  have  the  draft 
made  out  to  your  order  and  then  indorse  it  payable  to  the  order  of 
the  person  to  whom  you  are  sending  it.  It  will  then  contain  the  evi- 
dence in  itself  that  it  passed  from  you  to  the  person  to  whom  you 
wish  to  pay  the  money. 

A  check  is  designed  for  immediate  presentation  and  not  for  circu- 
lation ;  the  holder,  therefore,  should  present  it  for  payment  as  soon 
as  he  reasonably  can,  and  if  he  does  not,  the  retention  is  at  his  own 
risk,  and  if  a  loss  occurs  in  consequence  of  his  neglect,  the  check 
will  operate  as  payment.  But  delay  in  presentation  does  not  usually 
discharge  the  drawer.  Sometimes  checks  are  post-dated.  The 
object  of  thus  dating  them,  obviously,  is  to  obtain  delay  in  making 
payment. 

EXERCISE  196.    Commercial  Draft. 

Frederic  Baugher,  of  409  Devonshire  St.,  Boston,  draws  on  Peter 
Caldwell  &  Co.,  406  University  Ave.,  Indianapolis,  at  sixty  days' 
sight  for  one  thousand  dollars.  The  draft  is  drawn  in  favor  of  Wallace 
Dill  as  an  accommodation  to  Baugher,  who  has  the  draft,  with  Dill's 
indorsement,  discounted  at  the  Hub  National  Bank.  Date  to-day. 
Write  the  draft  as  it  will  appear  when  paid,  Caldwell  having  accepted 
the  draft  (five  days  after  date)  making  it  payable  at  the  Hoosier 
National  Bank. 

EXERCISE  19T.    Commercial  Draft. 

Parke  Schoch  draws  at  sight  on  Carl  lycwis  Altmaier,  46  Capitol 
St. ,  Harrisburg,  Pa. ,  for  $450.  The  draft  is  dated  to-day  and  is  pay- 
able to  the  order  of  W.  H.  Wheeler,  Pen  Yan,  N.  Y.  Write  the  draft 
as  it  will  appear  when  paid. 

EXERCISE  198.    Bank  Draft. 

The  Citizens'  National  Bank  of  Media,  Pa. ,  sell  a  draft  on  Phila- 
delphia (No.  4986)  for|7.35  to  Miss  Jeanie  Goodspeed.  Miss  Good- 
speed  indorses  the  draft  making  it  payable  to  Mrs.  Charles  Edgarson, 
42  West  Ave.,  Germantown.  The  cashier's  name  is  George  Washing- 
ton.    Write  the  draft.     Date  to-day. 

Supplementary  Exercises. 

180.  A  ^ocer's  casii  prices  are  5  per  cent  lower  than  his  three  months'  credit 
prices.  For  cash  he  sells  12%  lbs.  of  sugar  for  $.00.  How  many  pounds  should 
he  sell  for  $1.0-  on  three-months'  credit  ? 


BUSINESS  FORMS,  CUSTOMS  AND  ACCOUNTS. 


181.  An  agent  receives  $36,270  with  which  to  purchase  grain  after  deducting 
his  commission  of  ^  per  cent  of  the  sum  actually  invested.     Find  his  commission. 

182.  What  must  be  the  face  of  a  note  for  90  days,  which,  when  discounted  at 
a  bank  at  7  per  cent,  will  pay  a  bill  of  I524.98  ? 


LESSON  XCI. 

EXERCISE  199.    Telegraphic  Order. 

The  Avil  Printing  Company,  3943  Market  St. ,  Philadelphia,  ordef 
by  telegraph  from  the  Hollingswood  &  Whiting  Co.,  Boston,  to  be 
forwarded  by  express,  5000  paper  bags,  grade  A,  4000  paper  bags, 
grade  C,  and  2000  paper  bags,  grade  D.  Write  the  telegram.  Do  not 
exceed  ten  words. 

EXERCISE  200.    Paper  Invoice. 

Write  the  invoice  to  accompany  the  paper  bags  ordered  (Exercise 
199)  by  The  Avil  Printing  Company.  Grade  A  costs  $12.50  per  M 
grade  C  costs  I9.25  per  M,  and  grade  D  costs  I7.50  per  M. 


re  30913 


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